Can the renewal Cinnaholic Franchise Agreement contain different terms and conditions than the original agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
(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; and
(ix) Franchisee provides Franchisor with evidence that Franchisee has the right to remain in possession of the Franchised Site or to secure and develop a suitable alternative site acceptable to Franchisee for the renewal term.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the renewal agreement may contain different terms and conditions than the original agreement. Specifically, Cinnaholic has the option to require franchisees to execute the then-current form of the Franchise Agreement, which will supersede the original agreement.
This new agreement may include terms and conditions that are substantially different, potentially including increased Royalty Fees or Advertising Fees. However, the renewal Franchise Agreement will not provide for any additional renewal rights beyond the standard renewal term.
To renew the franchise agreement, a franchisee must meet several conditions, including giving Cinnaholic written notice at least six months before the initial term expires, not being in default of any agreements, and completing required maintenance and renovations to reflect Cinnaholic's current image. Franchisees must also pay a renewal fee equal to one-half of the then-current Franchise Fee, complete retraining if required, and execute a general release of claims against Cinnaholic. Additionally, they must provide evidence that they can remain in possession of the Franchised Site or secure an alternative location.