Must a Cinnaholic franchisee be current on all payments to lessors and vendors to be eligible for renewal?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee must be current on all payments to lessors and vendors to be eligible for renewal. Specifically, the franchisee must be current in the payment of all obligations to Cinnaholic and its affiliates and subsidiaries, as well as to lessors, vendors, and suppliers of the bakery.

This requirement ensures that franchisees maintain good financial standing with all parties involved in the operation of the Cinnaholic business. Failing to meet these payment obligations can prevent a franchisee from renewing their franchise agreement. This is a fairly standard requirement in franchising, as franchisors want to ensure that their franchisees are financially responsible and maintain positive relationships with suppliers and landlords.

In addition to being current on payments, the franchisee must meet other conditions to renew the franchise agreement, including providing written notice of their election to renew at least six months before the expiration of the initial term, executing Cinnaholic's then-current form of Franchise Agreement, paying a renewal fee equal to one-half of the then-current franchise fee, completing all required maintenance and remodeling of the bakery, completing any required retraining programs, and executing a general release of any claims against Cinnaholic.