Under what conditions can the Cinnaholic franchisor assign the agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1. Assignment by Franchisor. This Agreement may be unilaterally assigned by the Franchisor and shall inure to the benefit of its successors and assigns. Developer agrees and affirms that Franchisor may sell itself, its assets, the Marks and/or the CINNAHOLIC® System to a third-party; may go public, may engage in private placement of some or all of its securities; may merge, acquire other corporations, or be acquired by another corporation; and/or may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring. Developer further agrees and affirms that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities as CINNAHOLIC® Bakeries operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of these facilities, which Developer acknowledges may be proximate to any of its Bakeries. With regard to any of the above sales, assignments and dispositions, Developer expressly and specifically waives any claims, demands or damages arising from or related to the loss of Franchisor's name, the Marks (or any variation thereof) and the CINNAHOLIC® System and/or the loss of association with or identification of CINNAHOLIC Franchising, LLC under this Agreement. If Franchisor assigns its rights in this Agreement, nothing in this Agreement shall be deemed to require Franchisor to remain in the CINNAHOLIC® business or to offer or sell any products or services to Developer.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor has broad rights to assign the franchise agreement. Cinnaholic may unilaterally assign the agreement and it will benefit Cinnaholic's successors and assigns.
Specifically, Cinnaholic can sell itself, its assets, the trademarks, or the Cinnaholic system to a third party. They can also go public, engage in private placement of securities, merge with or acquire other corporations, or be acquired by another corporation. Additionally, Cinnaholic can undertake refinancing, recapitalization, leveraged buyouts, or other economic or financial restructuring.
The franchisee expressly waives any claims, demands, or damages related to the loss of Cinnaholic's name, the trademarks, the Cinnaholic system, or the loss of association with Cinnaholic Franchising, LLC due to these sales, assignments, and dispositions. If Cinnaholic assigns its rights, it is not obligated to remain in the Cinnaholic business or offer any products or services to the franchisee.