factual

If a Cinnaholic franchisee is in substantial compliance and the franchisor materially breaches the agreement, what is the initial cure period granted to Cinnaholic to remedy the breach?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee may terminate this Agreement if Franchisee is in substantial compliance with this Agreement and Franchisor materially breaches this Agreement and fails to cure such material breach within 90 days after written notice thereof is delivered to Franchisor.

Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured with such 90 day period and Franchisor has commenced and is continuing to make good faith efforts to cure such breach, Franchisor shall be given an additional 60 day period to cure the same, and this Agreement shall not terminate.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to the 2025 Cinnaholic Franchise Disclosure Document, if a Cinnaholic franchisee is in substantial compliance with the agreement and Cinnaholic materially breaches the agreement, the franchisee must provide written notice to Cinnaholic of the breach. Cinnaholic then has 90 days to cure the material breach.

However, if the breach is curable but cannot reasonably be cured within the initial 90-day period, and Cinnaholic has started and continues to make good faith efforts to cure the breach, Cinnaholic is granted an additional 60-day period to complete the cure. During this extended period, the franchise agreement will not be terminated, provided Cinnaholic is actively working to resolve the breach.

This clause provides some protection to Cinnaholic franchisees, ensuring that Cinnaholic must be given a reasonable opportunity to rectify any material breach of the franchise agreement before the agreement can be terminated. It also highlights the importance of clear communication and documentation of efforts to cure any breach, as the extension is contingent on Cinnaholic demonstrating good faith efforts to resolve the issue.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.