factual

What constitutes Franchisee's 'Interest' in telephone numbers and listings for a Cinnaholic franchise?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 2.1 Interest in Telephone Numbers and Listings. Franchisee has, or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, yellow-page, and other telephone directory listings (collectively, the "Telephone Numbers and Listings") related to the Bakery or the Marks (all of which right, title, and interest is referred to herein as Franchisee's "Interest").
  • 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:

Source: Item 23 — RECEIPT (FDD pages 62–269)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisee's 'Interest' in telephone numbers and listings encompasses the rights, title, and interest in telephone numbers and directory listings related to the Cinnaholic bakery or its trademarks. These listings include regular, classified, and yellow-page listings.

This means that during the term of the Franchise Agreement, the franchisee owns or will acquire the right to use specific telephone numbers and listings to promote their Cinnaholic bakery. However, upon termination of the Franchise Agreement, Cinnaholic has the right to direct the franchisee to transfer all rights and interests in these telephone numbers and listings to Cinnaholic. If Cinnaholic does not want the numbers and listings, the franchisee must terminate them or take other actions as directed by Cinnaholic.

To ensure the transfer of these assets, the franchisee appoints Cinnaholic as their attorney-in-fact, granting Cinnaholic the power to manage the transfer or termination of the telephone numbers and listings. This appointment is considered irrevocable until the franchisee fulfills all obligations under the Franchise Agreement and related agreements. This arrangement ensures that Cinnaholic can maintain continuity and control over its brand's presence in the market, even after a franchise agreement ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.