How many days does Cinnaholic have to cure a default before a franchisee can terminate the agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1 | 10 years |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the requirements, you can renew for one additional consecutive 10 year term; after that you will have no right to renew the Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You must: provide written notice of election to renew; not be in default of the Franchise Agreement or any other agreement relating to the Bakery; sign the then-current form of Franchise Agreement; pay a renewal fee; refurbish the Bakery, if required; complete any required retraining program; sign the current form of general release in Exhibit J to this Disclosure Document; and maintain ownership or leasehold interest in the Bakery location or secure a suitable alternative. Terms of the then-current form of Franchise Agreement may differ materially from any and all of those contained in the Franchise Agreement attached to this Disclosure Document. |
| d. | Termination by franchisee | Section 21.1 | You can terminate only if we fail to cure a default under the Franchise Agreement within 90 days (or 150 days in some instances) after you give us written notice of termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee can terminate the agreement if Cinnaholic fails to cure a default under the Franchise Agreement within 90 days, although there are instances where this extends to 150 days, after the franchisee provides written notice of termination.
It is important to note that this is the timeframe within which Cinnaholic must address the default to prevent termination by the franchisee. The specific circumstances that might lead to a longer cure period are not detailed in this section, so a prospective franchisee should seek clarification from Cinnaholic regarding these situations.
This termination right is specifically for instances where Cinnaholic is in default, providing a degree of protection for the franchisee. This is distinct from termination by Cinnaholic, which has its own set of conditions and cure periods as outlined elsewhere in the Franchise Agreement.