Can Cinnaholic require the proposed transferee to refurbish the Bakery as a condition of transfer?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic can request that a proposed transferee refurbish the Bakery as a condition of transfer. This requirement is outlined in Item 22, detailing the contracts franchisees must adhere to. Specifically, section (ix) states that at Cinnaholic's request, the proposed transferee or assignee must refurbish the Bakery in the manner and subject to the provisions described in Section 2.2(v).

This means that if a franchisee wants to sell their Cinnaholic Bakery to a new owner, Cinnaholic has the right to require the new owner to update the Bakery to meet current brand standards. These refurbishments would be at the expense of the franchisee or the transferee.

For a prospective franchisee, this clause highlights the importance of understanding all potential costs associated with transferring ownership. It also emphasizes the franchisor's control over maintaining brand consistency, which can impact the value and marketability of the franchise. Franchisees should carefully review Section 2.2(v) to understand the scope and potential costs of required refurbishments during a transfer.