How long does Cinnaholic have to accept a franchisee's offer to sell the Assets after receiving it?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Notwithstanding the provisions set forth in Section 22.3(i) above, if, within 45 days following the expiration of this Agreement, Franchisee shall receive a bona fide offer for the purchase of the Assets, Franchisee shall offer the same in writing to Franchisor at the same price and on the same terms or the monetary equivalent; which offer Franchisor may accept at any time within 15 days after receipt thereof. If Franchisor declines, or does not within such 15 day period accept, such offer, then Franchisee may sell the Assets to such purchaser, but not at a lower price nor on more favorable terms than have been offered to Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee receives a legitimate offer to purchase the business's assets within 45 days after the franchise agreement expires, they must present this offer to Cinnaholic in writing. Cinnaholic then has 15 days from the date they receive the offer to decide whether to accept it.
This right of first refusal allows Cinnaholic to maintain control over who enters the system and prevents unwanted parties from acquiring existing locations. If Cinnaholic declines the offer or fails to respond within the 15-day period, the franchisee is free to sell the assets to the original prospective buyer. However, the sale cannot be at a lower price or on more favorable terms than those initially offered to Cinnaholic.
This clause ensures that Cinnaholic has the first opportunity to buy back a franchise location if the franchisee decides to sell. For a prospective franchisee, this means that when they eventually decide to sell their Cinnaholic business, they must first offer it to Cinnaholic under the same terms offered by a third-party buyer, giving Cinnaholic the option to purchase the business before it goes to someone else.