What action must be taken by Cinnaholic Franchising LLC if a default or breach is made by the Tenant?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| witnesseth that: | Franchising LLC, a Georgia Limited Liability Company ("Franchisor") | party | the | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | WHEREAS, by Lease (the "Lease") dated the day of, 20, ("Lessor") leased unto Tenant, the premises (the "Leased Premises") briefly described as in copy of Lease attached hereto as Exhibit "A" and incorporated herein by reference; and | of | second part; | | WHEREAS, Franchisor virtue of a certain Franchise Agreement"); | has a vested interest in Agreement between Franchisor | the successful operation of the and Tenant, dated | Leased Premises by (the "Franchise | | NOW THEREFORE, for and reassign, all of their rights, title nevertheless expressly understood following terms, covenants, limitations, and conditions: | in consideration of the Franchisor and Tenant, Tenant does hereby assign, transfer and set over unto Franchisor, with the right to and interest in and to the Lease and agreed that this Assignment | making the Franchise Agreement and in and to the Leased of Lease is made to | between Premises; it being Franchisor upon the | | 1. Tenant shall conditions of the Lease so long said Lease or the Franchise Agreement; | retain possession of the leased as no default or breach occurs | premises in accordance with under the Lease, in any | the terms and agreement evidencing | | 2. If default or Agreement or the Franchise the Leased Premises, provided, over the Leased Premises for be mailed promptly by Franchisor Premises until such notice is Franchisor shall be deemed to Tenant, and shall be deemed to Lease theretofore applicable to rights and privileges granted to | breach be made by Tenant in the Agreement is Terminated, then however, that in the event the purpose of operating the same, to Lessor. Franchisor shall received by Lessor. Upon the be substituted as the have assumed expressly all of the the party of the first part, and Tenant under the terms and | performance of the Lease Franchisor shall have the option Franchisor elects to exercise said written notice of its election not have the right of possession receipt of notice of Tenant/Lessee in said Lease in the place and instead of terms, shall likewise be entitled conditions of the Lease, with the | or the Franchise of taking over option of taking to do so shall of the Leased exercise of such option, covenants, and obligations of the to enjoy all of the right to reassign | 3. That Franchisor shall have the right, but shall not be obligated, to cure any default by Tenant under the Lease within Tenant's cure period under the Lease, or within thirty (30) days after the expiration of Tenant's cure period under the Lease, provided that prior to the expiration of Tenant's cure period under the Lease, Franchisor notifies Landlord in writing that Franchisor intends t
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic Franchising LLC has the right, but not the obligation, to cure any default made by the tenant (franchisee) under the lease agreement. This means Cinnaholic can step in to resolve the issue, but they are not required to do so.
To exercise this right, Cinnaholic must notify the landlord in writing of their intent to cure the default before the tenant's cure period expires. Cinnaholic then has either the remainder of the tenant's cure period or 30 days after the tenant's cure period expires, whichever is longer, to resolve the default.
However, if Cinnaholic does not exercise its option to cure the default, they will not be liable for the tenant's rent or any other obligations under the lease. The tenant remains fully responsible for all lease obligations unless Cinnaholic explicitly assumes them by curing the default. Additionally, the tenant and landlord cannot modify or terminate the lease without Cinnaholic's written consent, giving Cinnaholic further control over the lease agreement.
This arrangement protects Cinnaholic's interest in the leased premises and ensures the continuity of the franchise operation. By having the right to cure defaults, Cinnaholic can prevent lease terminations that could negatively impact the brand and the franchise system. The clause regarding modifications and terminations prevents franchisees from making changes to the lease that could harm Cinnaholic's interests.