What is the Cinnaholic franchisee's obligation regarding interior and exterior signs?
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, franchisees must discontinue using all signs bearing Cinnaholic's marks upon termination or expiration of the franchise agreement. Franchisees must remove these signs within 10 days of termination or expiration. If the signs cannot be removed within one day, they must be completely covered until removal.
If a franchisee retains possession of the franchised site after termination or expiration, they are responsible for making modifications to both the exterior and interior décor of the bakery as required by Cinnaholic. These modifications are intended to eliminate any identification of the location as a Cinnaholic bakery. This includes removing all signs bearing Cinnaholic's marks.
Should the franchisee fail to modify the exterior and interior décor to Cinnaholic's satisfaction, Cinnaholic has the right to take action to modify the premises themselves. The franchisee will be charged for the costs incurred by Cinnaholic for these modifications and must pay Cinnaholic immediately.