Under what conditions can a Cinnaholic franchisee renew or extend their 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 stated in Section 2.1 of the Franchise Agreement. A franchisee has the option to renew for one additional consecutive 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 outlined in Section 2.2 of the Franchise Agreement. These include providing written notice of their election to renew, not being in default of the Franchise Agreement or any other agreement related to the bakery, and signing the then-current form of the Franchise Agreement.
Additional conditions for renewal include paying a renewal fee, refurbishing the bakery if required by Cinnaholic, completing any required retraining program, signing the current form of a general release (Exhibit J), and maintaining ownership or a leasehold interest in the bakery location or securing a suitable alternative location. It is important to note that the terms of the then-current Franchise Agreement may differ significantly from those in the original Franchise Agreement attached to the Disclosure Document, which could impact the franchisee's obligations and rights upon renewal.