If a Cinnaholic developer breaches any other agreement with the franchisor, can this lead to termination of the Development Agreement?

According to Cinnaholic's 2025 Franchise Disclosure Document, a breach or default under any Franchise Agreement or any other agreement between the Developer and Cinnaholic can lead to the termination of the Development Agreement. Specifically, if the breach or default is not cured within the time period required under the specific Franchise Agreement or other agreement, Cinnaholic has grounds to terminate the Development Agreement, regardless of whether Cinnaholic actually terminates the other agreements.

This provision means that Cinnaholic developers must adhere to all agreements with the franchisor, not just the Development Agreement itself. Failure to comply with the terms of a Franchise Agreement, a supply agreement, or any other agreement with Cinnaholic can trigger the termination of the Development Agreement, potentially halting the developer's expansion plans. The key factor is whether the breach is cured within the allotted time frame specified in the respective agreement.

This clause is significant for prospective Cinnaholic developers as it underscores the importance of maintaining compliance across all facets of their relationship with Cinnaholic. It also highlights the interconnectedness of the various agreements a developer might have with Cinnaholic, meaning a problem in one area can quickly escalate and affect the entire development schedule. Developers should carefully review all agreements and ensure they have systems in place to monitor and address any potential breaches promptly to avoid jeopardizing their development rights.