What is the initial term length for a Cinnaholic franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.1.
Initial Term.
Unless terminated earlier in accordance with the terms and conditions set forth herein, this Agreement and the franchise granted hereunder shall have an initial term of 10 years commencing as of the Effective Date (the "Initial Term").
- 2.2.
Renewal.
Upon the expiration of the Initial Term, Franchisee shall have the right to renew the franchise granted hereunder for an additional 10 year period provided that all of the following conditions are met:
(i) Franchisee gives Franchisor written notice of its election to renew the franchise not less than six months before the expiration of the Initial Term;
(ii) Franchisee is not, when notice is given, and does not become before the expiration of the Initial Term, in default of any provision of this Agreement or any other agreement between Franchisee and Franchisor or its subsidiaries or affiliates or with any other creditor or supplier of the Bakery or lessor or sublessor of the Franchised Site, and Franchisee shall have fully and faithfully performed all of its obligations under this Agreement and all such other agreements throughout their terms;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the initial term for a Cinnaholic franchise agreement is 10 years. This 10-year period commences on the effective date of the agreement. This means a franchisee can operate their Cinnaholic bakery for a decade, provided they adhere to the terms and conditions outlined in the franchise agreement.
At the end of the initial 10-year term, a Cinnaholic franchisee has the option to renew the franchise for an additional 10-year period. However, this renewal is contingent upon meeting specific conditions. The franchisee must provide written notice to Cinnaholic of their intent to renew at least six months before the initial term expires.
Furthermore, the franchisee must not be in default of any provision of the franchise agreement or any other agreements with Cinnaholic or its affiliates at the time of the renewal notice or before the initial term's expiration. They also must have fully performed all obligations under the agreements throughout their terms. Meeting these conditions ensures the franchisee's eligibility to continue operating their Cinnaholic location for another decade.