Does the Washington Addendum to the Cinnaholic FDD affect Item 17 of the FDD?

Yes, the Washington Addendum in Cinnaholic's 2025 Franchise Disclosure Document (FDD) directly affects Item 17. The addendum states that franchise agreement provisions, including those summarized in Item 17 of the FDD, are subject to state law. This means that certain terms related to termination, renewal, transfer, and dispute resolution, which are typically covered in Item 17, may be superseded or modified by Washington state law.

Specifically, the addendum highlights that RCW 19.100.180, the Washington Franchise Investment Protection Act, may supersede provisions in the franchise agreement concerning the franchisee's relationship with Cinnaholic, particularly in areas of termination and renewal. Additionally, court decisions could also override the franchise agreement. This implies that franchisees in Washington have certain legal protections and rights that take precedence over the standard terms outlined in the franchise agreement and summarized in Item 17.

Furthermore, the addendum addresses specific aspects of Item 17. For example, it states that any provision prohibiting a franchisee from communicating with regulators is inconsistent with the FDD instructions and unlawful under Washington law. It also clarifies that general releases in the franchise agreement that waive compliance with the Washington Franchise Investment Protection Act are void unless executed under specific conditions, such as a negotiated settlement with independent counsel. These stipulations directly modify and clarify how Item 17 applies to Cinnaholic franchisees in Washington.

In summary, prospective Cinnaholic franchisees in Washington should carefully review the Washington Addendum alongside Item 17 of the FDD to understand their rights and obligations under Washington state law. They should also consult with an attorney to ensure they fully understand the implications of these modifications and how they affect their franchise agreement.