Under what conditions can a Cinnaholic developer assign the agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall not subfranchise, sell, assign, transfer, merge, convey or encumber (each, a "Transfer") this Agreement or any of its rights or obligations hereunder, or suffer or permit any such Transfer of this Agreement or its rights or obligations hereunder to occur by operation of law or otherwise without the prior express written consent of Franchisor.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a developer's ability to assign the agreement is restricted. Cinnaholic requires express written consent from the Franchisor before a developer can subfranchise, sell, assign, transfer, merge, convey, or encumber the agreement, or allow such a transfer to occur by law or otherwise.
This means that a Cinnaholic developer cannot freely transfer their rights or obligations under the agreement without first obtaining permission from Cinnaholic. This provision allows Cinnaholic to maintain control over who becomes a developer in their system and ensures that any new developer meets their standards and qualifications.
This requirement is typical in franchising, as franchisors want to carefully vet and approve any new parties who will be operating under their brand. For a prospective Cinnaholic developer, this means they should not assume they can easily sell or transfer their development rights without Cinnaholic's approval. They should factor this restriction into their business planning and consider the potential implications for their exit strategy.