factual

Is a Cinnaholic franchisee required to complete a retraining program to renew their franchise agreement?

Cinnaholic Franchise · 2025 FDD

Answer 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, a franchisee may be required to complete a retraining program as part of the renewal requirements. To renew the franchise agreement for an additional 10-year term, the franchisee must meet several conditions.

These conditions include providing written notice of the election to renew, not being in default of the Franchise Agreement or any other agreement related to the bakery, and signing the then-current form of the Franchise Agreement. Additionally, the franchisee must pay a renewal fee, refurbish the bakery if required by Cinnaholic, 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.

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. This means that franchisees need to be prepared for potential changes in their obligations and the overall agreement structure upon renewal. The requirement to complete a retraining program is not guaranteed but is contingent on Cinnaholic's stipulations at the time of renewal.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.