Under what condition will Cinnaholic not assign the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any provision of the Agreement to the contrary, Franchisor will not make any assignment of the Agreement except to an assignee who, in Franchisor's good faith judgment, is willing and able to assume Franchisor's obligations under the Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic Franchising, LLC will not make any assignment of the Market Development Agreement except to an assignee who, in Cinnaholic's good faith judgment, is willing and able to assume Cinnaholic's obligations under the Agreement. This condition applies specifically to Cinnaholic franchises offered or sold to either a resident of the State of New York or a non-resident who will be operating a Cinnaholic franchise in the State of New York.
This provision ensures that if Cinnaholic decides to assign the Market Development Agreement to another party, that party must be capable of fulfilling Cinnaholic's responsibilities as outlined in the agreement. This protects the franchisee by ensuring the new party has the willingness and capability to support the franchise operations.
This addendum modifies the original Market Development Agreement for Cinnaholic franchises in New York to comply with New York General Business Law. The clause ensures that Cinnaholic cannot simply transfer its obligations to an entity that is unable or unwilling to meet them, providing a safeguard for franchisees operating in New York.