What constitutes a material breach of the Cinnaholic Development Agreement by the Franchisor that would allow the Developer to terminate?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer may terminate this Agreement if Developer is in substantial compliance with this Agreement and Franchisor materially breaches this Agreement and fails to cure such material breach within 90 days after written notice thereof is delivered to Franchisor.
Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such 90 day period and Franchisor has commenced and is continuing to make good faith efforts to cure such breach, Franchisor shall be given an additional 60 day period to cure the same, and this Agreement shall not terminate.
In the event of termination by Developer, all post-termination obligations of Developer described herein shall not be waived but shall be strictly adhered to by Developer.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, a Developer (the franchisee in this case) can terminate the Development Agreement if they are in substantial compliance with the agreement and Cinnaholic (the franchisor) materially breaches the agreement. However, the Developer can only terminate if Cinnaholic fails to correct the breach within 90 days after receiving written notice of the breach.
There is an exception to the 90-day cure period. If the breach is something that cannot reasonably be fixed within 90 days, and Cinnaholic starts and continues to make good faith efforts to fix the breach, Cinnaholic gets an additional 60 days to resolve the issue.
If the Developer terminates the agreement, all of the Developer's obligations after the termination still apply and must be followed. This means that even after ending the agreement, the Developer must still meet all the responsibilities outlined in the original contract.