What exhibit must a Cinnaholic franchisee sign to renew their franchise agreement?
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, to renew a franchise agreement, a franchisee must sign the current form of general release in Exhibit J. The initial franchise term with Cinnaholic is 10 years, and if the franchisee meets certain requirements, they can renew for one additional 10-year term. After that, there is no further right to renew the Franchise Agreement.
To renew the Cinnaholic franchise agreement, the franchisee must provide written notice of their election to renew and not be in default of the Franchise Agreement or any other agreement related to the bakery. Additionally, they must sign the then-current form of the Franchise Agreement, pay a renewal fee, and refurbish the bakery if required by Cinnaholic. Completing any required retraining programs and maintaining ownership or a leasehold interest in the bakery location, or securing a suitable alternative location, are also necessary steps.
It is important to note that the terms of the then-current form of the Franchise Agreement may differ significantly from those contained in the original Franchise Agreement attached to the Disclosure Document. This means that when renewing, Cinnaholic franchisees may be subject to new or altered terms and conditions, which could impact their business operations and financial obligations. Therefore, franchisees should carefully review the renewal agreement and seek legal counsel to understand the implications of any changes.