Does the Cinnaholic Development Agreement allow for renewal or extension of the franchise term?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1 | 10 years |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the requirements, you can renew for one additional consecutive 10 year term; after that you will have no right to renew the Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You must: provide written notice of election to renew; not be in default of the Franchise Agreement or any other agreement relating to the Bakery; sign the then-current form of Franchise Agreement; pay a renewal fee; refurbish the Bakery, if required; complete any required retraining program; sign the current form of general release in Exhibit J to this Disclosure Document; and maintain ownership or leasehold interest in the Bakery location or secure a suitable alternative. Terms of the then-current form of Franchise Agreement may differ materially from any and all of those contained in the Franchise Agreement attached to this Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the standard franchise agreement has a term of 10 years, with an option to renew for one additional 10-year term if certain requirements are met. After this single renewal, there is no further right to renew the Franchise Agreement.
To renew the Cinnaholic franchise, a franchisee must provide written notice of their election to renew, not be in default of the Franchise Agreement or any other agreement related to the bakery, and sign the then-current form of Franchise Agreement. They must also pay a renewal fee, refurbish the bakery if required, complete any required retraining program, sign the current form of general release in Exhibit J, and maintain ownership or leasehold interest in the bakery location or secure a suitable alternative.
Prospective franchisees should be aware that the terms of the then-current form of the Franchise Agreement may differ significantly from those in the original Franchise Agreement attached to the Disclosure Document. This means that renewal is not guaranteed on the same terms as the initial agreement, and could involve increased costs or obligations. Franchisees should carefully review the renewal terms and conditions when approaching the end of their initial term to make an informed decision about whether to renew their Cinnaholic franchise.