Under what conditions can a Cinnaholic franchisee terminate the franchise agreement if they are in substantial compliance?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may terminate this Agreement if Franchisee 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 with 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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement if they are in substantial compliance with the agreement and if Cinnaholic materially breaches the agreement. The franchisee must provide written notice of the breach to Cinnaholic and allow 90 days for Cinnaholic to cure the breach.
However, if the breach is of a nature that it cannot reasonably be cured within 90 days, Cinnaholic is granted an additional 60 days to cure the breach, provided that Cinnaholic has commenced and is continuing to make good faith efforts to cure the breach. If Cinnaholic fails to cure the breach within the initial 90-day period (or the extended 60-day period, if applicable), the franchisee may then terminate the agreement.
This clause protects the franchisee by allowing them to end the agreement if Cinnaholic fails to uphold their end of the contract. However, it also provides Cinnaholic with a reasonable opportunity to fix any issues before termination can occur, which is a fairly standard practice in franchising agreements.