What must a Cinnaholic franchisee do with the Cinnaholic marks upon termination of the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
overnmental authority having jurisdiction over this Agreement limit Franchisee's ability to pay, and Franchisor's ability to receive, such liquidated damages, Franchisee shall be liable to Franchisor for any and all damages which it incurs, now or in the future, as a result of Franchisee's default under this Agreement.
22.2. Obligations upon Termination or Expiration. Upon the termination or expiration of this Agreement, whether by reason of lapse of time, default in performance, abandonment of the Bakery or other cause or contingency, Franchisee shall:
- (i) forthwith return to Franchisor all material furnished by Franchisor containing confidential information, operating instructions, business practices, or methods or procedures, including, without limitation, the Operations Manual;
- (ii) discontinue at the Franchised Site all use of the Marks, and the use of any and all signs, products, paper goods and other items bearing the Marks. Any signs containing the Marks which Franchisee is unable to remove within one day of the termination or expiration of this Agreement shall be completely covered by Franchisee until the time of their removal which shall be within 10 days of termination or expiration of this Agreement;
- (iii) if Franchisee retains possession of the Franchised Site, at Franchisee's expense, make such reasonable modifications to the exterior and interior décor of the Bakery and the Franchised Site as Franchisor requires to eliminate its identification as a CINNAHOLIC® Bakery and to avoid violation of the non-compete provision;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must discontinue all use of the Cinnaholic marks at the franchised site. This includes refraining from using any signs, products, paper goods, or other items bearing the marks. If the franchisee is unable to remove signs containing the marks within one day of termination or expiration, they must completely cover them until removal, which must occur within 10 days of termination or expiration.
Additionally, the franchisee must take action to cancel all assumed names or equivalent registrations relating to the use of any Cinnaholic mark. They must also assign to Cinnaholic or its designee all rights, title, and interest in telephone numbers, directory listings, advertisements, website URLs, email addresses, store leases, and governmental licenses or permits used for the bakery's operation.
Furthermore, the franchisee must make reasonable modifications to the exterior and interior décor of the bakery and franchised site, at their own expense, to eliminate its identification as a Cinnaholic bakery. This is to avoid giving the impression that the agreement is still in force or that the franchisee is connected with Cinnaholic or has the right to use the Cinnaholic system or marks. These measures ensure that the brand's identity is protected and that customers are not misled after a franchise agreement ends.