Can Cinnaholic unilaterally assign the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may be unilaterally assigned by the Franchisor and shall inure to the benefit of its successors and assigns.
Franchisee 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.
Franchisee 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 Franchisee acknowledges may be proximate to any of its Bakeries.
With regard to any of the above sales, assignments and dispositions, Franchisee 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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic can unilaterally assign the Franchise Agreement and it will benefit its successors and assigns. This means Cinnaholic can transfer the agreement to another party without needing the franchisee's consent.
Cinnaholic has the right to sell the company, its assets, the trademarks, and the Cinnaholic system to a third party. They can also go public, engage in private placements of securities, merge with or acquire other corporations, or undergo financial restructuring. Cinnaholic also has the right to purchase, merge, acquire, or affiliate with existing competitive or noncompetitive franchise networks or other businesses.
The franchisee specifically 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, resulting from these sales, assignments, and dispositions. However, for franchisees operating in New York, Cinnaholic will not assign the agreement except to an assignee who, in Cinnaholic's good faith judgment, is willing and able to assume Cinnaholic's obligations under the agreement.