Under what grounds can a Cinnaholic franchisee terminate the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Section 21.1 | You can terminate only if we fail to cure a default under the Franchise Agreement within 90 days (or 150 days in some instances) after you give us written notice of termination. |
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 can terminate the franchise agreement under specific conditions. The franchisee can terminate the agreement if Cinnaholic fails to address a default under the Franchise Agreement within 90 days, although in some instances, this period may extend to 150 days, following written notification of termination from the franchisee.
This termination right is limited, as it depends on Cinnaholic's failure to cure a default. This means the franchisee must first identify a breach of the agreement by Cinnaholic, provide written notice, and then wait for the cure period to expire before they can terminate the agreement. This process requires careful documentation and adherence to the notification procedures outlined in the franchise agreement.
It is important for a prospective Cinnaholic franchisee to understand the specific defaults that would allow for termination and the exact procedure for providing notice and allowing for a cure period. They should also be aware of any state-specific laws that may affect their termination rights, as highlighted in the addenda for states like Minnesota and Illinois, which provide additional statutory rights and protections for franchisees.