factual

What happens if a Cinnaholic Developer commits a breach under any other agreement with the Franchisor?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (xv) Developer commits a breach or default under any Franchise Agreement or any other agreement between Developer and Franchisor and the breach or default is not cured during the time period required under such Franchise Agreement or other agreement, regardless of whether Franchisor in fact terminates such Franchise Agreement or other agreement;

Source: Item 23 — RECEIPT (FDD pages 62–269)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, if a Developer breaches or defaults under any Franchise Agreement or any other agreement with Cinnaholic, and the breach or default is not cured within the time period required under that specific agreement, Cinnaholic may terminate the Development Agreement. This is regardless of whether Cinnaholic actually terminates the specific Franchise Agreement or other agreement under which the breach occurred.

This provision means that a Cinnaholic Developer must maintain compliance with all agreements they have with the franchisor, not just the Development Agreement. A failure to meet obligations under one agreement can trigger consequences for the Development Agreement, potentially leading to its termination. This interconnectedness of agreements underscores the importance of carefully reviewing and adhering to all contractual obligations with Cinnaholic.

For a prospective Cinnaholic Developer, this clause highlights the need for diligent management and compliance across all aspects of the franchise relationship. It is crucial to understand the terms of each agreement and ensure timely fulfillment of all obligations to avoid jeopardizing the Development Agreement and the opportunity to develop Cinnaholic bakeries.

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.