If a Cinnaholic developer fails to comply with any applicable law or regulation, can Cinnaholic terminate the Development Agreement?

According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic has the right to terminate the Development Agreement if the developer fails to comply with any federal, state, or local law or regulation applicable to the operation of the franchise. This includes any failure to comply with Anti-Terrorism Laws.

This means that as a Cinnaholic developer, you must ensure full compliance with all applicable laws and regulations. Failure to do so could result in the immediate termination of your Development Agreement. This condition underscores the importance of due diligence and adherence to legal standards in operating a Cinnaholic franchise.

Cinnaholic can terminate the agreement immediately without providing an opportunity to cure the violation in certain situations, such as those involving Anti-Terrorism Laws. However, for other breaches of the agreement, Cinnaholic may provide a 30-day written notice to allow the developer to correct the failure. If the breach cannot be reasonably cured within 30 days but the developer is making good faith efforts to correct it, an additional 30-day period may be granted.

This termination clause is a standard protective measure for franchisors to safeguard their brand reputation and ensure legal compliance across all franchise locations. Prospective Cinnaholic developers should be aware of this clause and take proactive steps to maintain compliance with all relevant laws and regulations to avoid potential termination of their Development Agreement.