How long does Cinnaholic have to accept a franchisee's offer to sell their bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If during the term of this Agreement, Franchisee shall receive a bona fide offer from a prospective purchaser for any interest in Franchisee or the Bakery (whether by sale of assets, sale of equity interest, merger, consolidation or otherwise), it shall offer the same to Franchisor in writing at the same price and on the same terms or the monetary equivalent; which offer Franchisor may accept at any time within 30 days after receipt thereof. If the parties cannot agree on a reasonable monetary equivalent, an independent appraiser designated by Franchisor shall determine the monetary equivalent and the appraiser's determination will be final. If Franchisor declines, or does not within such 30 day period accept, such offer, then Franchisee may make such Transfer to such purchaser (provided Franchisor approves of such purchaser in accordance with Section 19.2 and subject to compliance with Section 19.4), but not at a lower price nor on more favorable terms than have been offered to Franchisor. If Franchisee fails to complete such Transfer within 90 days following the refusal or failure to act by Franchisor, then Franchisee may not complete such Transfer without first offering the same to Franchisor again as provided above.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic has 30 days to accept a franchisee's offer to sell their bakery. Specifically, if a franchisee receives a legitimate offer from a potential buyer for any interest in the franchise or the bakery, they must first offer it to Cinnaholic in writing, including the price and terms.
Cinnaholic then has 30 days from the date they receive the offer to accept it. If Cinnaholic declines the offer or does not respond within the 30-day period, the franchisee is free to proceed with the sale to the original prospective purchaser, provided that Cinnaholic approves of the purchaser.
However, the sale to the third party cannot be at a lower price or on more favorable terms than those initially offered to Cinnaholic. If the sale is not completed within 90 days after Cinnaholic's refusal or failure to act, the franchisee must re-offer the business to Cinnaholic before proceeding with any transfer.