Under what condition are transfer fees collectable by Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| This General Release is made effective this day of, 20 In consideration for the grant by Cinnaholic Franchising, LLC, a Georgia Limited Liability Company ("CINNAHOLIC®"), to the undersigned of certain rights in connection with the operation transfer or renewal thereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned, individually and collectively, hereby unconditionally release, discharge, and acquit CINNAHOLIC®, its past and present subsidiaries and affiliates, and its and their shareholders, owners, directors, officers, managers, members, partners, employees, agents, representatives, successors and assigns, from any and all liabilities, damages, claims, demands, costs, expenses, debts, indemnities, suits, disputes, controversies, actions and causes of action of any kind whatsoever, whether known or unknown, fixed or contingent, regarding or arising out of any prior or existing franchise relationship, development agreement, franchise agreement or any other agreement executed by any of the any CINNAHOLIC ®facility (whether currently or previously of them), or any other prior or existing business relationship between any of the undersigned and CINNAHOLIC® (or any subsidiary or affiliate of CINNAHOLIC®), individually or collectively has asserted, may have asserted or (or any of the aforementioned related parties) at any time up to the date of this General Release, including specifically, without limitation, claims arising from contract, written or oral communications, alleged misrepresentations, and acts of negligence, whether active or passive. This General Release shall survive the assignment or termination of any of the franchise agreements or other documents entered into by and between CINNAHOLIC® and any of the undersigned. This those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNAHOLIC® or any other the Maryland Franchise Registration and Disclosure construed in accordance with the laws of the State of Georgia without regard to its conflicts of law provisions. | of a CINNAHOLIC® facility and/or the undersigned and CINNAHOLIC (or any subsidiary or affiliate of CINNAHOLIC), owned or operated by the undersigned or any which the undersigned or any of them CINNAHOLIC® could have asserted against General Release is not intended as a waiver of person, directly or indirectly, from liability imposed by Law. This General Release shall be governed by and |
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Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpt from Item 22 regarding contracts for Cinnaholic franchises does not specify the conditions under which transfer fees are collected. Instead, it focuses on a general release agreement related to the grant, transfer, or renewal of franchise rights. This agreement releases Cinnaholic from various liabilities and claims under certain conditions.
The document excerpt describes the scope of the general release, which includes any prior or existing franchise relationship, development agreement, or other agreements. It outlines that the release covers various types of claims, such as those arising from contract, misrepresentations, or negligence. However, it does not detail the specific circumstances or requirements for franchise transfers or the associated fees.
To understand the conditions under which Cinnaholic collects transfer fees, a prospective franchisee should refer to the sections of the FDD that specifically address franchise transfers and fees. These sections would typically be found in Item 5, which outlines the initial fees, and Item 6, which covers other fees that franchisees may be required to pay during the term of the franchise agreement. Further clarification can be obtained directly from Cinnaholic regarding their transfer policies and fee structure.