Does state law permit the franchisee to terminate the Cinnaholic franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
e enforceable.
- 6. Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
- 7. Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
- **8.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees may be able to terminate the franchise agreement based on grounds permitted by state law. Specifically, this right is mentioned in the context of Washington and New York state law.
In Washington, the FDD states that a Cinnaholic franchisee has the right to terminate the franchise agreement if state law allows it. This implies that the franchisee's ability to terminate the agreement is not solely dictated by the franchise agreement itself but is also subject to the protections and rights afforded by Washington state law.
For New York franchisees, the FDD indicates that they may terminate the agreement on any grounds available by law. This suggests that New York franchisees have termination rights that go beyond what is stipulated in the franchise agreement, and are protected by New York state law. Therefore, prospective franchisees should consult with a legal professional to understand the specific termination rights available to them based on their location.