Is a Cinnaholic franchisee's obligation to refurbish their premises dependent on their lease agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xvii) Without limiting any of Franchisee's other obligations under this Agreement, at the request of Franchisor, but not more often than once every 5 years, unless sooner required by Franchisee's lease, Franchisee shall refurbish the premises of the Bakery at its expense, to conform to the Bakery, trade dress, color schemes and presentation of the Marks in a manner consistent with the thencurrent image for new Bakeries ("Refurbishments").
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee's obligation to refurbish their bakery premises is influenced by their lease agreement. Specifically, Cinnaholic requires franchisees to refurbish their bakery at their own expense, conforming to the brand's current image. This refurbishment is generally required at the franchisor's request, but not more often than once every five years.
However, there is an exception: if the franchisee's lease requires refurbishment sooner than every five years, the franchisee must comply with the lease terms. These refurbishments can be extensive, potentially involving structural changes, new equipment, signs, remodeling, redecoration, and modifications to existing improvements.
This means that a Cinnaholic franchisee needs to carefully review their lease agreement in conjunction with the franchise agreement to understand their refurbishment obligations. The lease agreement could accelerate the timing of required refurbishments, adding an expense that the franchisee must be prepared to cover. It is important to note that the obligation to refurbish to maintain the brand's image is separate from any other maintenance obligations outlined in the franchise agreement or operations manual.