What sections of the Cinnaholic Development Agreement describe termination by the franchisor with cause?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
CHISE RELATIONSHIP**
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
Development Agreement
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 3 | Expires the date after operations of the final Bakery to be established are required to begin as provided on the Development Schedule. |
| b. | Renewal or extension of | Not Applicable | Not Applicable |
| the term | |||
| c. | Requirements for you to | Not Applicable | Not Applicable |
| renew or extend | |||
| d. | Termination by franchisee | Section 12.1 | You |
| can | |||
| terminate | |||
| only | |||
| if | |||
| we | |||
| fail | |||
| to | |||
| cure | |||
| a | |||
| default | |||
| under | |||
| the | |||
| Development | |||
| Agreement | |||
| within | |||
| 90 | |||
| days | |||
| (or | |||
| 150 | |||
| days | |||
| in | |||
| some | |||
| instances) | |||
| after | |||
| you | |||
| give | |||
| us | |||
| written | |||
| notice | |||
| of | |||
| termination. | |||
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable. Termination of the Development Agreement does not allow for the termination of any then in force Franchise Agreement. Termination of any Franchise Agreement does not allow for termination of the Development Agreement, so long as Franchisee is otherwise in compliance with its development schedule. |
| f. | Termination by franchisor with "cause" | Sections 12.2 and 12.3 | We can terminate only if you default or if certain events (described in (g) and (h) below) occur. In some instances, you will have an opportunity to cure the default. Termination of the Development Agreement does not allow for the termination of any then in force Franchise Agreement. |
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, the sections of the Development Agreement that describe termination by the franchisor with cause are Sections 12.2 and 12.3. Cinnaholic can terminate the agreement if the franchisee defaults or if certain specified events occur. In some instances, the franchisee will have an opportunity to correct the default.
It is important to note that termination of the Development Agreement does not automatically allow for the termination of any Franchise Agreement that is already in force. Similarly, termination of a Franchise Agreement does not allow for termination of the Development Agreement, as long as the franchisee is otherwise in compliance with its development schedule.
Section 12.3 defines 'cause' as failure to comply with any provisions of the Development Agreement not otherwise specified in Section 12.2. This section refers to curable defaults, meaning the franchisee has an opportunity to correct the issue and avoid termination.