If a Cinnaholic franchisee ceases to operate the bakery at the franchised site, can Cinnaholic immediately terminate the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may immediately terminate this Agreement upon written notice to Franchisee, without opportunity to cure, if:
- (ii) Following commencement of the operation of the Bakery, Franchisee ceases to operate the Bakery at the Franchised Site;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic can immediately terminate the franchise agreement without allowing an opportunity to cure if the franchisee ceases to operate the bakery at the franchised site.
This means that if a Cinnaholic franchisee stops running the bakery, Cinnaholic has the right to terminate the agreement immediately. This is a significant point for prospective franchisees to consider, as any cessation of operations, even temporary, could lead to termination.
This clause protects Cinnaholic by ensuring that franchisees maintain continuous operation, which upholds the brand's reputation and market presence. Franchisees need to be aware of this condition and have plans in place to avoid any situation that could lead to the bakery ceasing operations.