If a Cinnaholic developer makes a material misrepresentation to Cinnaholic, can Cinnaholic terminate the Development Agreement?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic can terminate the Development Agreement with a developer if the developer makes a material misrepresentation. Specifically, Cinnaholic can immediately terminate the agreement with written notice and without an opportunity for the developer to cure the issue. This applies whether the misrepresentation occurs before or after the effective date of the agreement.

This provision protects Cinnaholic from entering into or continuing a business relationship with a developer who provides false or misleading information. A 'material misrepresentation' typically refers to a false statement or omission of fact that is significant enough to influence a decision. For a prospective Cinnaholic developer, this means ensuring that all information provided to Cinnaholic during the application and agreement process is accurate and complete.

The inclusion of this clause is a standard practice in franchising, as franchisors need to rely on the information provided by developers to make informed decisions about awarding development rights. Failure to provide accurate information can have serious consequences, including the immediate termination of the Development Agreement with Cinnaholic.