Under what circumstances regarding franchise termination and non-renewal will California Franchise Relations Act or federal bankruptcy law supersede the Cinnaholic Franchise Agreement?

According to the 2025 FDD, the California Franchise Relations Act or federal bankruptcy law may supersede certain provisions of the Cinnaholic Franchise Agreement under specific circumstances. If any part of the Cinnaholic agreement regarding the termination and non-renewal of a franchise is inconsistent with either the California Franchise Relations Act or federal bankruptcy law, then these laws will take precedence. This ensures that franchisees in California receive protections mandated by state law and federal bankruptcy regulations, even if the franchise agreement attempts to limit those rights.

This means that Cinnaholic franchisees in California should be aware of their rights under both the franchise agreement and California law. If there is a conflict, California law or federal bankruptcy law will govern the termination or non-renewal of the franchise. This is particularly important because the franchise agreement is governed by Georgia law, which may differ from California law.

Prospective Cinnaholic franchisees should consult with an attorney to fully understand their rights and obligations under both the franchise agreement and applicable California and federal laws, especially concerning termination, non-renewal, and bankruptcy. This will help ensure they are protected and can navigate any potential disputes effectively.