What written notice is required from a Cinnaholic franchisee to renew their franchise agreement?
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, a franchisee must provide written notice of election to renew their franchise agreement. The initial franchise term is 10 years, and if the franchisee meets specific requirements, they can renew for one additional, consecutive 10-year term. After this renewal, there is no further right to renew the Franchise Agreement.
To be eligible for renewal, the franchisee must not be in default of the Franchise Agreement or any other agreement related to the bakery. Additionally, they must sign the then-current form of Franchise Agreement, pay a renewal fee, and refurbish the bakery if required by Cinnaholic. Completing any required retraining programs and signing the current form of general release are also necessary steps for renewal.
It is important to note that the terms of the then-current form of Franchise Agreement may differ significantly from those in the original Franchise Agreement attached to the Disclosure Document. This means that franchisees need to carefully review the new agreement to understand any changes in obligations, fees, or operational requirements before committing to the renewal. Securing a continued ownership or leasehold interest in the bakery location, or finding a suitable alternative location, is also a prerequisite for renewal.