What happens if a Cinnaholic Developer fails to comply with any applicable law or regulation?

According to Cinnaholic's 2025 Franchise Disclosure Document, if a Cinnaholic Developer fails to comply with any federal, state, or local law or regulation applicable to the operation of the franchise, Cinnaholic Franchising, LLC can immediately terminate the Development Agreement without providing an opportunity to cure the issue. This includes failing to comply with Anti-Terrorism Laws.

This means that Cinnaholic franchisees must ensure strict adherence to all legal and regulatory requirements. Failure to do so can result in the immediate loss of their franchise rights. This could include anything from health code violations to labor law infractions.

Cinnaholic places a strong emphasis on compliance, particularly with Anti-Terrorism Laws, making franchisees responsible for understanding and adhering to these regulations. Any misrepresentation or violation in this area by the franchisee or their associated parties can lead to immediate termination of the agreement. This highlights the importance of due diligence and ongoing compliance efforts for Cinnaholic franchisees.