What actions related to the Cinnaholic marks can lead to termination of the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
15.1. Ownership of the Marks. Franchisee acknowledges and agrees that nothing herein contained shall give Franchisee any right, title or interest in and to the Marks, except the non-exclusive right to use the Marks in connection with the operation of the Bakery under the CINNAHOLIC® System in accordance with the terms of this Agreement. Franchisee also acknowledges and agrees that the Marks and all goodwill now or in the future pertaining to the Marks are the sole and exclusive property of Franchisor and that it shall not raise or cause to be raised any questions concerning, or objections to, the validity or ownership of the Marks on any grounds whatsoever. Franchisee will not seek to register, re-register or assert claim to or ownership of, or otherwise appropriate to itself, any of the Marks or any marks or names confusingly similar to the Marks, or the goodwill symbolized by the Marks except insofar as such action inures to the benefit of and has the prior written approval of Franchisor. Upon the expiration, termination or cancellation of this Agreement, whether by lapse of time, default or otherwise, Franchisee agrees immediately to discontinue all use of the Marks and to remove all copies, replicas, reproductions or simulations thereof from the Bakery and to take all necessary steps to assign, transfer or surrender to Franchisor or otherwise place in Franchisor or its designee title to all such names or marks (other than the Marks) which Franchisee may have used during the term of this Agreement or any renewal or extension thereof in connection with the operation of the Bakery. Franchisee hereby acknowledges that Franchisor owns and controls the CINNAHOLIC® System and all of its components.
- 15.2.
Use of the Marks.
In order to protect the Marks, the CINNAHOLIC® System, and the goodwill associated therewith, Franchisee shall, unless Franchisor otherwise consents in writing:
- (i) Only use the Marks designated by Franchisor, and only in the manner authorized and permitted by Franchisor.
Franchisee's right to use the Marks is limited to such uses as are authorized under this Agreement, and any unauthorized use thereof shall constitute an infringement of Franchisor's rights.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, a franchisee's unauthorized use of the brand's marks constitutes an infringement of Cinnaholic's rights. The franchise agreement grants franchisees a non-exclusive right to use Cinnaholic's marks solely in connection with operating their bakery under the Cinnaholic system. This right is limited to uses authorized within the agreement.
To protect the marks and associated goodwill, franchisees must only use the marks designated by Cinnaholic and in the manner authorized. Franchisees cannot seek to register or claim ownership of the marks or any confusingly similar marks. Upon termination or cancellation of the franchise agreement, franchisees must immediately discontinue all use of the marks and remove all copies from the bakery.
These stipulations are typical in franchising, as the franchisor needs to protect its brand identity and ensure consistent representation across all franchise locations. Failure to comply with these requirements could lead to termination of the franchise agreement and potential legal action for infringement.