factual

In the event of termination of a Cinnaholic franchise, what actions must the franchisee take regarding internet web sites and listings?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

re (whether in accordance with or in violation of Section 15.2 of the Franchise Agreement) during the term of the Franchise Agreement, certain right, title, and interest in and to certain domain names, hypertext markup language, uniform resource locator addresses, and access to corresponding Internet web sites, and the right to hyperlink to certain web sites and listings on various Internet search engines (collectively, the "Internet Web Sites 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, or on periodic request of Franchisor, Franchisee will immediately direct all Internet Service Providers, domain name registries, Internet search engines, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Internet Web Sites and Listings: (i) to transfer all of Franchisee's Interest in such Internet Web Sites 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 Internet Web Sites and Listings, Franchisee will immediately direct the Internet Companies to terminate such Internet Web Sites and Listings or will take such other actions with respect to the Internet Web Sites 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 Internet 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, 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 Internet 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 Internet 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 Internet Companies to transfer all Franchisee's Interest in and to the Internet Web Sites and Listings to Franchisor;

  • (ii) Direct the Internet Companies to terminate any or all of the Internet Web Sites and Listings; and

  • (iii) Execute the Internet Companies' standard assignment forms or other documents in order to affect such transfer or termination of Franchisee's Interest.

  • 2.4 Certification of Termination. Franchisee hereby directs the Internet Companiesto accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.

  • 2.5 Cessation of Obligations. After the Internet Companies have duly transferred all Franchisee's Interest in such Internet Web Sites and Listings to Franchisor, as between Franchisee and Franchisor, Franchise will have no further interest in, or obligations under, such Internet Web Sites and Listings.

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

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, in the event of the termination of the Franchise Agreement, the franchisee is required to take specific actions regarding internet web sites and listings. The franchisee must immediately direct all Internet Service Providers, domain name registries, Internet search engines, and other listing agencies with which the franchisee has Internet Web Sites and Listings to transfer all of the franchisee's interest in such Internet Web Sites and Listings to Cinnaholic. Additionally, the franchisee must execute any documents and take any actions necessary to effectuate this transfer.

Cinnaholic also has the power of attorney to act on behalf of the franchisee to ensure the transfer or termination of the Internet Web Sites and Listings. This includes directing Internet Companies to transfer the franchisee's interest to Cinnaholic, directing them to terminate any or all of the Internet Web Sites and Listings, and executing standard assignment forms or other documents to affect the transfer or termination of the franchisee's interest. Cinnaholic can provide the Internet Companies with a written statement, signed by an officer or agent of Cinnaholic, as conclusive proof of the termination of the Franchise Agreement.

After the Internet Companies have transferred all of the franchisee's interest in the Internet Web Sites and Listings to Cinnaholic, the franchisee will have no further interest in, or obligations under, such Internet Web Sites and Listings, as between the franchisee and Cinnaholic. However, the franchisee remains liable to the Internet Companies for any sums they are obligated to pay for obligations incurred before the date Cinnaholic accepted the transfer of interest, or for any other obligations not subject to the Franchise Agreement or the Internet Listing Agreement. This Internet Listing Agreement survives the termination of the Franchise Agreement, ensuring these obligations continue even after termination.

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.