Are there any requirements outlined in the Cinnaholic Development Agreement for a franchisee to renew or extend the franchise term?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1 | 10 years |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the requirements, you can renew for one additional consecutive 10 year term; after that you will have no right to renew the Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You must: provide written notice of election to renew; not be in default of the Franchise Agreement or any other agreement relating to the Bakery; sign the then-current form of Franchise Agreement; pay a renewal fee; refurbish the Bakery, if required; complete any required retraining program; sign the current form of general release in Exhibit J to this Disclosure Document; and maintain ownership or leasehold interest in the Bakery location or secure a suitable alternative. Terms of the then-current form of Franchise Agreement may differ materially from any and all of those contained in the Franchise Agreement attached to this Disclosure Document. |
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 initial franchise term is 10 years, as detailed in Section 2.1 of the Franchise Agreement. If a franchisee meets specific requirements outlined in Section 2.2, they have the option to renew for one additional, consecutive 10-year term. After this renewal, there is no further right to renew the Franchise Agreement.
To renew the Cinnaholic franchise, a franchisee must fulfill several conditions. These include providing written notice of their election to renew, ensuring they are not in default of the Franchise Agreement or any other agreement related to the bakery, and signing the then-current form of Franchise Agreement. Additionally, the franchisee must pay a renewal fee, refurbish the bakery if required, complete any necessary retraining programs, sign the current form of general release in Exhibit J of the Disclosure Document, and maintain ownership or a leasehold interest in the bakery location, or secure a suitable alternative.
Prospective franchisees should be aware that the terms of the then-current form of the Franchise Agreement may differ significantly from those in the Franchise Agreement attached to the 2025 Disclosure Document. This means that renewal is not guaranteed and may involve accepting new terms and conditions. Meeting the renewal requirements does not automatically entitle a franchisee to renew if they are unwilling to agree to the new terms in the then-current Franchise Agreement.