How is the length of the Cinnaholic franchise term defined in Section 3 of the Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 3 | Expires the date after operations of the final Bakery to be established are required to begin as provided on the Development Schedule. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the length of the franchise term is detailed in Section 3 of the Development Agreement. The franchise term expires on the date after the operations of the final bakery to be established are required to begin, as specified in the Development Schedule.
This means the term's length is not a fixed number of years but is instead tied to the franchisee's adherence to the development schedule for opening Cinnaholic bakeries. The franchise agreement concludes after the last bakery is expected to be operational according to the agreed-upon schedule.
For a prospective Cinnaholic franchisee, this implies that the Development Agreement's term is directly linked to their ability to meet the obligations outlined in the Development Schedule. Failure to adhere to the schedule could impact the term's length, and it is crucial to understand and comply with these requirements to maintain the franchise agreement.