What fee is required to renew a Cinnaholic franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
(iv) Franchisee shall pay a renewal fee equal to one-half of the then-current Franchise Fee (as such term is hereinafter defined) charged by Franchisor;
(v) Franchisee shall complete, at its own expense and to Franchisor's satisfaction, all maintenance, refurnishing, renovation, modernizing and remodeling of the Bakery as Franchisor shall reasonably require so as to reflect the current image and standards of CINNAHOLIC® Bakeries;
(vi) Franchisee shall be current in the payment of all obligations to Franchisor and to any of its affiliates and subsidiaries as well as lessors, vendors and suppliers of the Bakery;
(vii) Before renewal, Franchisee and/or Franchisee's supervisory and operational manager(s) shall at Franchisee's expense, attend and successfully complete to Franchisor's reasonable satisfaction any retraining program Franchisor may require;
(viii) Franchisee and its owners execute a general release, in a form satisfactory to Franchisor, of any and all claims it may have against Franchisor, including any affiliates or subsidiaries, and its and their officers, directors, shareholders, managers, members, partners, employees and agents; and
(ix) Franchisee provides Franchisor with evidence that Franchisee has the right to remain in possession of the Franchised Site or to secure and develop a suitable alternative site acceptable to Franchisee for the renewal term.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, to renew a franchise agreement for an additional 10-year term, a franchisee must pay a renewal fee. This fee is equal to one-half of the then-current initial franchise fee that Cinnaholic is charging at the time of renewal.
In addition to the renewal fee, the franchisee must meet several other conditions to be eligible for renewal. These include providing written notice of the intent to renew at least six months before the end of the current term, not being in default of any agreements with Cinnaholic or its affiliates, and fully performing all obligations under the franchise agreement. The franchisee is also responsible for completing any required maintenance, refurnishing, renovation, or remodeling of the bakery to meet Cinnaholic's current standards, at the franchisee's own expense.
Furthermore, the franchisee and their supervisory/operational managers may need to attend and successfully complete any retraining programs that Cinnaholic requires, also at the franchisee's expense. The franchisee must also provide a general release of any claims against Cinnaholic and provide evidence that they have the right to remain in possession of the franchised site or secure an alternative site acceptable to Cinnaholic for the renewal term.
It's important to note that upon renewal, Cinnaholic has the option to require the franchisee to execute the then-current form of the Franchise Agreement. This new agreement may contain terms and conditions substantially different from the original, including potential increases in royalty fees or advertising fees. However, the renewal Franchise Agreement will not provide for any additional renewal rights.