What actions is the Cinnaholic franchisee required to perform to assist in accomplishing the purposes of the Telephone Listing Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 Further Assurances.
Franchisee agrees that at any time after the date hereof, it will perform such acts and execute and deliver such documents as may be necessary to assist in or accomplish the purposes of this Telephone Listing Agreement.
2.2 Transfer. On Termination of the Franchise Agreement, if Franchisor directs Franchisee to do so, Franchisee will immediately direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Numbers and Listings: (i) to transfer all Franchisee's Interest in such Telephone Numbers and Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Numbers and Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Numbers and Listings or will take such other actions with respect to the Telephone Numbers and Listings as Franchisor directs.
2.3 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Telephone Listing Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, on Termination of the Franchise Agreement, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Telephone Listing Agreement. Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including, without limitation, this Telephone Listing Agreement. Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
(i) Direct the Telephone Companies to transfer all Franchisee's Interest in and to the Telephone Numbers and Listings to Franchisor;
(ii) Direct the Telephone Companies to terminate any or all of the Telephone Numbers and Listings; and
(iii) Execute the Telephone Companies' standard assignment forms or other documents in order to affect such transfer or termination of Franchisee's Interest.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee is required to perform certain actions and execute documents to assist in fulfilling the Telephone Listing Agreement. Specifically, the franchisee must perform any acts and deliver any documents that may be necessary to assist in or accomplish the purposes of the Telephone Listing Agreement.
Furthermore, upon termination of the Franchise Agreement, the franchisee is obligated to direct telephone companies to transfer all rights and interests in telephone numbers and listings to Cinnaholic. The franchisee must also execute documents and take actions to effect this transfer. If Cinnaholic does not want the telephone numbers and listings, the franchisee must direct the telephone companies to terminate them or take other actions as directed by Cinnaholic.
To ensure Cinnaholic can manage the telephone listings, the franchisee appoints Cinnaholic (or any officer/agent) as their attorney-in-fact, granting them the power to take action and execute documents necessary for the Telephone Listing Agreement's purposes. This appointment is considered irrevocable until the franchisee meets all obligations under the Franchise Agreement and related agreements, including the Telephone Listing Agreement. Cinnaholic is granted the power to direct telephone companies to transfer or terminate the franchisee's interest in telephone numbers and listings and to execute the necessary documents for such actions.
This comprehensive requirement ensures that Cinnaholic maintains control over telephone listings associated with the brand, especially after a franchise agreement ends. This is typical in franchising to protect brand consistency and customer relationships. The franchisee should understand these obligations and the implications of granting Cinnaholic such broad powers related to telephone listings.