What rights does a Cinnabon franchisee have to use the Marks after the franchise agreement expires or is terminated?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
emedies After Your Default) will not (i) be a defense for you to our enforcement of any other provision of this Agreement or waive or release you from any of your other obligations under this Agreement, (ii) be a defense at law or equity based on impossibility of your performance or any claim against us or our Approved Suppliers. (iii) constitute an actual or constructive termination of this Agreement, or (iv) be our sole or exclusive remedy for your default. You must continue to pay all fees and otherwise comply with all of your obligations under this Agreement following our exercise of any of these rights. If we exercise any of our rights under Section 17.5, we may thereafter terminate this Agreement without providing you any additional corrective or cure period, unless the default giving rise to our right to terminate this Agreement has been cured to our reasonable satisfaction.
18. OBLIGATIONS ON EXPIRATION OR TERMINATION
- 18.1 General Obligations. On expiration or termination of this Agreement for any reason, you must:
- A. Immediately cease using the System, including the Marks and any confusingly similar names, marks, commercial symbols, systems, insignia, symbols, color schemes, trade dress, designs, procedures, domain names, and methods. If you fail or refuse to make changes to the Franchised Business required to distinguish the Franchised Business from its former appearance, we have the right, in addition to all other remedies, to enter the Accepted Location and make the required changes on your behalf, and you must pay to us all costs and expenses we or our affiliates incur in making the changes, including interest from the date of demand, plus an administrative fee in an amount equal to 15% of the costs and expenses that we or our affiliates incur.
- B. Immediately return to us: (i) all hard copies and electronic copies (capable of being returned) of the Confidential Information and Trade Secrets, including the Manuals, together with
all copies of any of them;
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a franchisee's right to use Cinnabon's intellectual property, including its Marks, ceases immediately upon the expiration or termination of the franchise agreement. All rights to use the Intellectual Property automatically revert back to Cinnabon without any cost to them or need for additional documentation. Cinnabon may, however, request that the franchisee execute documents to confirm this reversion.
Specifically, the franchisee must immediately stop using the Cinnabon System, including the Marks and anything confusingly similar, such as names, symbols, color schemes, and domain names. The franchisee is also required to take action to cancel any assumed name registrations related to the use of Cinnabon's Marks and transfer all related domain names and social media accounts to Cinnabon.
This means that upon termination or expiration, a former Cinnabon franchisee cannot continue to operate a similar business using the Cinnabon brand or any branding that could be confused with it. This is a standard practice in franchising to protect the brand's integrity and prevent consumer confusion. The franchisee must also cease identifying themselves as a current or former Cinnabon franchisee.