Under what circumstances does the Cinnaholic agreement require a franchisee to submit to a court proceeding in the state where the franchisor's principal executive office is located?

According to Cinnaholic's 2025 Franchise Disclosure Document, under certain circumstances, the standard franchise agreement may require a franchisee to submit to a court proceeding in the state where Cinnaholic's principal executive office is located. However, this provision may not be enforceable for franchisees operating in Maryland due to the Maryland Franchise Registration and Disclosure Law.

Specifically, an addendum to the franchise agreement for Maryland franchisees clarifies that nothing in the agreement will prevent a franchisee from entering into litigation with Cinnaholic in Maryland, despite any provisions suggesting otherwise. This addendum aims to protect the rights of franchisees under Maryland law, ensuring they are not compelled to litigate outside of their state.

This means that while the standard Cinnaholic franchise agreement might include a clause requiring out-of-state court proceedings, Maryland franchisees have the right to pursue litigation against Cinnaholic within Maryland. Prospective franchisees should review any state-specific addenda to understand how local laws may modify the standard franchise agreement terms, particularly regarding legal proceedings and dispute resolution.