Besides Section 20, what other procedures must a Cinnaholic franchisee comply with related to discontinuing operations of the bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
e or that Franchisee is connected in any way with Franchisor or that Franchisee has the right to use the CINNAHOLIC® System or the Marks;
- (v) refrain from making use of or availing itself to any of the confidential information, Operations Manual or other information received from Franchisor or disclosing or revealing any the same in violation of Section 20.3 hereof;
- (vi) take such action as may be required to cancel all assumed names or equivalent registrations relating to the use of any Mark;
- (vii) assign to Franchisor or its designee all of Franchisee's rights, title, and interest in the telephone numbers, telephone directory listings and advertisements, website URLs (whether acquired by Franchisee in accordance with or in violation of Section 15.2 hereof), e-mail addresses, store leases and governmental licenses or permits used for the operation of the Bakery. Simultaneously with Franchisee's execution of this Agreement, Franchisee will execute the Internet Web Sites and Listings Agreement attached hereto as Exhibit C and the Telephone Listing Agreement attached hereto as Exhibit D; and
- (viii) strictly comply with the terms and conditions of Section 20 above and any other procedures in the Operations Manual that are established by Franchisor related to discontinuing operations of the Bakery.
If Franchisee fails to modify the exterior and interior décor of the Bakery and the Franchised Site as Franchisor requires to eliminate its identification as a CINNAHOLIC® Bakery (including the removal of all signs bearing the Marks), Franchisor may take such action to modify the exterior and interior décor of the Bakery and the Franchised Site and charge Franchisee for cost of such action. Franchisee shall immediately pay Franchisor for the cost of any action taken by Franchisor to modify the exterior and interior décor of the Bakery and the Franchised Site.
22.3. Sale upon Expiration or Termination.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, in addition to Section 20, a franchisee must adhere to other procedures detailed in the Operations Manual when discontinuing bakery operations. Specifically, Section 22.2 outlines several obligations upon termination or expiration of the Franchise Agreement.
These obligations include returning all confidential materials, such as the Operations Manual, to Cinnaholic. The franchisee must also cease all use of Cinnaholic's trademarks (the Marks) at the franchised site, including removing or covering any signs bearing those marks within specified timeframes. Furthermore, franchisees must modify the bakery's interior and exterior to eliminate any identification as a Cinnaholic location, ensuring compliance with non-compete provisions.
Additionally, the franchisee is prohibited from operating under any name or manner that might mislead the public into thinking the agreement is still active or that they are still affiliated with Cinnaholic. The franchisee must also take actions to cancel any assumed names or equivalent registrations related to the use of any Mark and assign to Cinnaholic all rights to telephone numbers, directory listings, website URLs, email addresses, store leases, and governmental licenses or permits used for the bakery's operation. These measures ensure a clean break and protect Cinnaholic's brand and operational integrity after a franchise ceases operation.