What is the deadline for closing any sale of Assets if Cinnaholic exercises its option to purchase?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Any sale of the Assets hereunder shall close no later than 60 days after delivery of written notice of Franchisor's exercise of its option is given to Franchisee. Franchisor has the right to assign its option hereunder and Franchisee must sign all documents of transfer reasonably necessary for the purchase of the Assets. All Assets transferred shall be free and clear of all liens and encumbrances, with all sales and transfer taxes paid by the Franchisee. At the closing, Franchisee and its owners shall execute general releases, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its owner, officers, employees, directors, agents, successors, and assigns.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if Cinnaholic exercises its option to purchase the assets of a Cinnaholic bakery, the sale of those assets must close no later than 60 days after Cinnaholic provides written notice to the franchisee of its decision to exercise that option.
Cinnaholic retains the right to assign its option to purchase the assets to another party, and the franchisee is obligated to sign all necessary transfer documents to facilitate the purchase. The assets being transferred must be free of any liens or encumbrances, and the franchisee is responsible for paying all sales and transfer taxes associated with the sale.
At the closing of the sale, the franchisee and its owners are required to execute general releases, in a form satisfactory to Cinnaholic, releasing Cinnaholic from any and all claims. This ensures a clean break and protects Cinnaholic from potential future liabilities related to the franchise.