Under what conditions can a Cinnaholic franchisee 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 standard franchise term is 10 years, as detailed in Section 2.1 of the Franchise Agreement. A franchisee has the option to renew the agreement for one additional 10-year term, according to Section 2.2. After this renewal, there is no further right to renew the Franchise Agreement.
To be eligible for renewal, a Cinnaholic franchisee must meet several requirements. First, they must provide written notice of their election to renew. They cannot be in default of the Franchise Agreement or any other agreement related to the bakery. Additionally, franchisees must sign the then-current form of the Franchise Agreement, which may contain terms that differ significantly from the original agreement.
Further conditions for renewal include paying a renewal fee, and if required, refurbishing the bakery to meet current standards. Franchisees must also complete any required retraining programs to stay updated with Cinnaholic's operational standards. Finally, they need to sign the current form of general release, as outlined in Exhibit J of the Disclosure Document, and maintain ownership or a leasehold interest in the bakery location, or secure a suitable alternative location. These stipulations ensure that Cinnaholic maintains consistent brand standards and operational efficiency across all franchise locations.