Under what conditions is a Cinnaholic franchisee required to refurbish the Bakery as part of the renewal process?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchise Agreement
| 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; |
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, a franchisee may be required to refurbish the Bakery as part of the renewal process. To renew the franchise agreement for an additional 10-year term, a franchisee must meet several requirements. 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.
Additionally, the franchisee must pay a renewal fee, complete any required retraining program, and sign the current form of a general release. Maintaining ownership or a leasehold interest in the Bakery location, or securing a suitable alternative, is also necessary. Critically, the franchisee must refurbish the Bakery if Cinnaholic requires it as a condition of renewal.
It is important to note that the terms of the then-current form of the Franchise Agreement may differ significantly from those in the original Franchise Agreement attached to the Disclosure Document. This means that the costs and requirements for refurbishment could change over time, potentially impacting the franchisee's investment and profitability upon renewal.