Under what conditions can a Cinnaholic developer terminate the agreement if they are in substantial compliance?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer may terminate this Agreement if Developer is in substantial compliance with this Agreement and Franchisor materially breaches this Agreement and fails to cure such material breach within 90 days after written notice thereof is delivered to Franchisor.
Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such 90 day period and Franchisor has commenced and is continuing to make good faith efforts to cure such breach, Franchisor shall be given an additional 60 day period to cure the same, and this Agreement shall not terminate.
In the event of termination by Developer, all post-termination obligations of Developer described herein shall not be waived but shall be strictly adhered to by Developer.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a developer can terminate the agreement if they are in substantial compliance with the agreement's terms and if Cinnaholic materially breaches the agreement. To do so, the developer must provide written notice of the breach to Cinnaholic, and Cinnaholic must fail to correct the breach within 90 days of receiving the notice.
However, if the breach is of a nature that it cannot reasonably be fixed within 90 days, Cinnaholic is granted an extension of an additional 60 days to cure the breach, provided that Cinnaholic has already commenced and continues to make good faith efforts to resolve the issue.
Even if the developer terminates the agreement under these conditions, all post-termination obligations of the developer, as outlined in the agreement, must still be strictly adhered to.