Under what conditions can Cinnaholic terminate the franchise agreement with a cure period?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.3.
Termination by Franchisor with a Cure Period.
Franchisor shall have the right to terminate this Agreement upon 30 days written notice if Developer fails to comply with any other provisions of this Agreement and such failure remains uncured in Franchisor's sole discretion; provided, however, if the breach is curable but is of a nature which cannot reasonably be cured within such 30 day period and Developer has commenced and is continuing to make good faith efforts to cure such breach, Developer shall be given an additional 30 day period to cure the same, and this Agreement shall not terminate.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to terminate the agreement with a franchisee if the franchisee fails to comply with any provision of the agreement. In this case, Cinnaholic must provide a 30-day written notice to allow the franchisee an opportunity to correct the failure.
However, if the breach is of such a nature that it cannot be reasonably corrected within the initial 30-day period, and the franchisee has started and continues to make good faith efforts to correct the breach, Cinnaholic will grant an additional 30-day period for the franchisee to resolve the issue. If the franchisee does not cure the breach within the allowable time, Cinnaholic can terminate the agreement.
This is a fairly standard clause in franchise agreements, allowing the franchisor to maintain brand standards and protect the system while also giving franchisees a reasonable opportunity to fix any issues. It is important for a prospective Cinnaholic franchisee to understand what constitutes a breach of the agreement and what steps are required to cure such a breach in order to avoid termination.