If a Cinnaholic developer is dissolved, can Cinnaholic terminate the Development Agreement?

According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic can terminate the Development Agreement immediately if the developer is dissolved, either voluntarily or involuntarily. This falls under circumstances where Cinnaholic can terminate the agreement without providing an opportunity for the developer to cure the issue.

This provision protects Cinnaholic from potential liabilities and ensures the continuity of its development plans. If a developer dissolves, it may no longer be capable of fulfilling its obligations under the Development Agreement, which could disrupt Cinnaholic's expansion strategy. By having the right to immediate termination, Cinnaholic can promptly find a new developer to take over the project.

It is important for prospective Cinnaholic developers to understand the conditions under which the Development Agreement can be terminated. Dissolution of the business entity, whether voluntary or involuntary, is a significant risk factor that can lead to immediate termination and loss of development rights. Developers should ensure they have a stable business structure and a clear plan to avoid dissolution to maintain their development rights with Cinnaholic.