What is a Cinnaholic franchisee required to do upon learning about an infringement of the mark?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee must immediately notify Cinnaholic when they become aware of any infringement or challenge to the use of the Cinnaholic mark. This requirement ensures that Cinnaholic can take appropriate action to protect its brand and intellectual property. The FDD emphasizes that Cinnaholic has the right to decide what action to take in such situations.

This notification requirement is a standard practice in franchising, as franchisors need to maintain control over their brand and trademarks. By promptly reporting any potential infringement, the franchisee helps Cinnaholic protect its brand reputation and prevent unauthorized use of its trademarks. The franchisee's role is primarily to inform Cinnaholic, which then assumes responsibility for handling the legal and administrative aspects of addressing the infringement.

Cinnaholic retains exclusive control over any litigation, USPTO proceedings, or other actions related to infringement, challenges, or claims concerning the Cinnaholic mark. This means that franchisees are not authorized to independently pursue legal action or engage in negotiations with potential infringers. Instead, they must rely on Cinnaholic to manage these matters. This arrangement is typical in franchise systems, as it ensures consistency and uniformity in how the brand's intellectual property is protected.

In practical terms, if a Cinnaholic franchisee notices another business using a similar name or logo, or selling products that appear to infringe on Cinnaholic's trademarks, they must immediately report this to Cinnaholic. Failing to do so could potentially expose the franchisee to liability or be considered a breach of the franchise agreement. By adhering to this requirement, franchisees contribute to the overall strength and protection of the Cinnaholic brand.