factual

How many years is the renewal term for a Cinnaholic franchise agreement?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

val before commencing operation of the Bakery.

2. TERM AND RENEWAL

  • 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;
  • (iii) Franchisee shall execute, at Franchisor's option, Franchisor's then-current form of Franchise Agreement, which Franchise Agreement shall supersede in all respects the terms and conditions of this Agreement and may contain terms and conditions substantially different from those set forth herein, including, without limitation, an increase in Royalty Fees or Advertising Fees (as such terms are hereinafter defined); provided, however, the renewal Franchise Agreement shall not provide for any additional renewal rights;
  • (iv) Franchisee shall pay a renewal fee equal to one-half of the then-current Franchise Fee (as such term is hereinafter defined) charged by Franchisor;
  • (v) Franchisee shall complete, at its own expense and to Franchisor's satisfaction, all maintenance, refurnishing, renovation, modernizing and remodeling of the Bakery as Franchisor shall reasonably require so as to reflect the current image and standards of CINNAHOLIC® Bakeries;
  • (vi) Franchisee shall be current in the payment of all obligations to Franchisor and to any of its affiliates and subsidiaries as well as lessors, vendors and suppliers of the Bakery;
  • (vii) Before renewal, Franchisee and/or Franchisee's supervisory and operational manager(s) shall at Franchisee's expense, attend and successfully complete to Franchisor's reasonable satisfaction any retraining program Franchisor may require;
  • (viii) Franchisee and its owners execute a general release, in a form satisfactory to Franchisor, of any and all claims it may have against Franchisor, including any affiliates or subsidiaries, and its and their officers, directors, shareholders, managers, members, partners, employees and agents;

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, the initial term for a Cinnaholic franchise agreement is 10 years. Upon expiration of the initial term, a franchisee has the option to renew the franchise for an additional 10-year period, provided certain conditions are met. These conditions include providing written notice of the intent to renew at least six months before the initial term expires, not being in default of any agreements with Cinnaholic or its affiliates, and fully performing all obligations under the franchise agreement.

To renew the franchise agreement, the franchisee must execute Cinnaholic's then-current form of franchise agreement, which may contain terms and conditions substantially different from the original agreement. This could include changes to royalty fees or advertising fees. The franchisee must also pay a renewal fee equal to one-half of the then-current franchise fee.

Additionally, the franchisee is responsible for completing any required maintenance, refurnishing, renovation, modernizing, and remodeling of the bakery to meet Cinnaholic's current image and standards. The franchisee must also be current on all payments to Cinnaholic, its affiliates, and suppliers. Retraining programs may also be required for the franchisee and their operational managers. Finally, the franchisee must provide evidence that they have the right to remain in possession of the franchised site or secure an alternative site acceptable to Cinnaholic for the renewal term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.