Does the Cinnaholic franchise agreement grant franchisees ownership of the Cinnaholic marks?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
15. MARKS
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees do not gain ownership of the brand's trademarks or service marks. Instead, Cinnaholic grants franchisees a non-exclusive right to use their marks solely for operating a Cinnaholic bakery under the Cinnaholic system. This usage must align with the franchise agreement's terms. Franchisees acknowledge that the marks and associated goodwill remain the exclusive property of Cinnaholic.
This means a Cinnaholic franchisee's right to use the brand's marks is limited to what's authorized in the franchise agreement. Unauthorized use of these marks constitutes an infringement of Cinnaholic's rights. Franchisees cannot register or claim ownership of any domain name or electronic address that incorporates Cinnaholic's marks. If a franchisee does acquire such a domain name, they must transfer all rights to it to Cinnaholic upon request.
Upon termination of the franchise agreement, franchisees must immediately cease using Cinnaholic's marks and remove all reproductions of them from the bakery. They must also transfer to Cinnaholic the rights to any names or marks used during the agreement (other than the Cinnaholic marks themselves). This ensures that Cinnaholic retains complete control over its brand identity and prevents franchisees from using the brand's reputation for their own purposes after the franchise relationship ends. This is a standard practice in franchising, as the franchisor needs to maintain uniform brand standards and protect its intellectual property.