Does Cinnaholic have to offer renewal terms generally available to other franchisees?

According to the 2025 Cinnaholic Franchise Disclosure Document, Michigan law includes a provision that protects franchisees regarding franchise renewal. Specifically, a provision that permits Cinnaholic to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value of the franchisee's inventory, supplies, equipment, fixtures, and furnishings at the time of expiration is void and cannot be enforced against the franchisee. This protection ensures that Cinnaholic franchisees in Michigan are entitled to compensation for their assets if a renewal is denied.

However, the Michigan law specifies some exceptions to this compensation requirement. Personalized materials that have no value to Cinnaholic, as well as inventory, supplies, equipment, fixtures, and furnishings not reasonably required for the franchised business, are not subject to compensation. This clarifies that only essential and non-personalized assets are considered for fair market value compensation upon non-renewal.

Furthermore, this protection applies only if (i) the term of the franchise is less than 5 years; and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising, or other representation that reflects a different identity than Cinnaholic. This condition limits the applicability of the compensation requirement to shorter-term franchises where the franchisee is restricted from operating a similar business under a different brand after the franchise term ends.