What is the length of the initial term 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 of the franchise agreement is 10 years. This 10-year term commences on the effective date of the agreement. Unless the agreement is terminated earlier according to its terms, the franchisee has the right to operate their Cinnaholic bakery for this initial period.
Upon completion 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 Cinnaholic with written notice of their intent to renew at least six months before the initial term expires.
Furthermore, to qualify for renewal, the Cinnaholic franchisee must be in full compliance with all provisions of the franchise agreement and any other agreements with Cinnaholic or its affiliates. This includes fulfilling all obligations to creditors, suppliers, and lessors associated with the bakery. Any default on these obligations at the time of renewal, or leading up to it, could disqualify the franchisee from extending the agreement.