Are there instances where Cinnaholic has 150 days to cure a default under the Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3 of the Agreement is amended by adding the following sentences at the end of such Section: "Minnesota law provides franchisees with certain termination and non-renewal rights.
Minnesota Statutes Section 80C.14, subds. 3, 4 and 5 require, except in certain specified cases, that you be given 90 days notice of terminations (with 60 days to cure)."
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document, there is no mention of Cinnaholic having 150 days to cure a default under the Development Agreement. However, the addendum for Minnesota states that franchisees must be given 90 days' notice of terminations, with 60 days to cure, except in certain specified cases, as required by Minnesota Statutes Section 80C.14, subds. 3, 4, and 5. This indicates that the cure period can vary based on the specific circumstances and the laws of the state where the franchise is located.
Prospective franchisees should be aware that the termination and cure rights can differ significantly depending on the state. The Minnesota addendum specifically addresses the franchisee's rights under Minnesota law, highlighting the importance of understanding the legal protections available in their specific state. This suggests that franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws.
Since the FDD does not provide a definitive answer regarding a 150-day cure period, it is essential for potential Cinnaholic franchisees to directly ask the franchisor about the standard cure periods for defaults under the Development Agreement, as well as any circumstances that might warrant a longer or shorter cure period. Additionally, franchisees should inquire about any state-specific regulations that could affect the cure period, ensuring they are fully informed about their rights and responsibilities.