Is a Cinnaholic franchisee required to sign the then-current form of Franchise Agreement to renew?
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, a franchisee must sign the then-current form of the Franchise Agreement to renew their franchise. The initial franchise term is 10 years, and if the franchisee meets specific requirements, they can renew for one additional consecutive 10-year term. After that, there is no right to renew the Franchise Agreement.
To renew the Cinnaholic franchise, the franchisee must provide written notice of their election to renew and must not be in default of the Franchise Agreement or any other agreement related to the bakery. In addition to signing the then-current form of the Franchise Agreement, the franchisee must 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.
It is important to note that the terms of the then-current form of the Franchise Agreement may differ materially from those contained in the original Franchise Agreement attached to the 2025 Disclosure Document. This means that franchisees need to carefully review the new agreement to understand any changes in their rights and obligations. This is a fairly standard practice in franchising, as franchise systems evolve over time, and the updated agreement will reflect those changes.
Prospective Cinnaholic franchisees should be aware of these renewal requirements and consider the potential impact of changes in the Franchise Agreement on their business. It would be prudent to consult with a franchise attorney to review the then-current form of the Franchise Agreement before committing to a renewal.