What section of the Cinnaholic Development Agreement outlines the conditions under which a franchisee can terminate the agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| 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, Section 21.1 of the Franchise Agreement details the conditions under which a franchisee can terminate the agreement. Specifically, the franchisee can terminate the agreement only if Cinnaholic fails to correct a default under the Franchise Agreement within 90 days, although there are some instances where this extends to 150 days, after the franchisee provides written notice of termination.
This means that a Cinnaholic franchisee's ability to terminate the agreement is limited and depends on Cinnaholic's failure to address a default. The franchisee must first provide written notice and allow Cinnaholic a significant period to cure the default before termination is possible. This is a fairly standard clause in franchise agreements, designed to give the franchisor an opportunity to rectify any issues before the franchisee can terminate the agreement.
Prospective Cinnaholic franchisees should carefully review Section 21.1 of the Franchise Agreement to fully understand their termination rights and the specific procedures they must follow. They should also be aware of what constitutes a 'default' under the agreement, as this will be the basis for any termination claim. Understanding these conditions is crucial before entering into a franchise agreement with Cinnaholic.