factual

In the event of termination of the Cinnaholic franchise agreement, what actions must the franchisee take regarding telephone numbers and listings?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

all not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.

2. TRANSFER; APPOINTMENT

  • 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:

  • (i) Direct the Telephone Companies to transfer all Franchisee's Interest in and to the Telephone Numbers and Listings to Franchisor;

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

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must take specific actions regarding telephone numbers and listings if directed by Cinnaholic. The franchisee is required to immediately instruct all telephone companies and listing agencies to transfer all rights and interest in the telephone numbers and listings to Cinnaholic. Additionally, the franchisee must execute any necessary documents and actions to facilitate this transfer.

If Cinnaholic does not want to accept the telephone numbers and listings, the franchisee must immediately direct the telephone companies to terminate the numbers and listings or take other actions as directed by Cinnaholic. To ensure Cinnaholic can manage the telephone listings effectively, the franchisee appoints Cinnaholic as their attorney-in-fact, granting them the authority to take actions and execute documents related to the telephone listings on behalf of the franchisee.

This appointment is considered irrevocable until the franchisee fulfills all obligations under the franchise agreement and any related agreements, including the Telephone Listing Agreement. Cinnaholic is not obligated to accept the transfer of the franchisee's interest in the telephone numbers and listings, and the powers conferred to Cinnaholic are solely to protect Cinnaholic's interests, without imposing a duty to exercise such powers. The Telephone Listing Agreement survives the termination of the Franchise Agreement, meaning these obligations continue even after the 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.