What are Cinnaholic franchisees required to do with Internet Service Providers upon termination of the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ccordance with or in violation of Section 15.2 of the Franchise Agreement) during the term of the Franchise Agreement, certain right, title, and interest in and to certain domain names, hypertext markup language, uniform resource locator addresses, and access to corresponding Internet web sites, and the right to hyperlink to certain web sites and listings on various Internet search engines (collectively, the "Internet Web Sites 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, or on periodic request of Franchisor, Franchisee will immediately direct all Internet Service Providers, domain name registries, Internet search engines, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Internet Web Sites and Listings: (i) to transfer all of Franchisee's Interest in such Internet Web Sites 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 Internet Web Sites and Listings, Franchisee will immediately direct the Internet Companies to terminate such Internet Web Sites and Listings or will take such other actions with respect to the Internet Web Sites 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 Internet 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, 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 Internet Listing Agreement.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding their Internet presence upon termination of the Franchise Agreement. Specifically, the franchisee must immediately direct all Internet Service Providers, domain name registries, Internet search engines, and other listing agencies with which the franchisee has Internet Web Sites and Listings to transfer all of the franchisee's interest in such Internet Web Sites and Listings to Cinnaholic.
This transfer includes domain names, hypertext markup language, uniform resource locator addresses, access to corresponding Internet web sites, and the right to hyperlink to certain web sites and listings on various Internet search engines related to the bakery or the Marks. The franchisee is also required to execute documents and take actions necessary to complete this transfer.
Cinnaholic also has the power and right to direct the Internet Companies to transfer all of the franchisee's interest in and to the Internet Web Sites and Listings to Cinnaholic, direct the Internet Companies to terminate any or all of the Internet Web Sites and Listings, and execute the Internet Companies' standard assignment forms or other documents in order to affect such transfer or termination of Franchisee's Interest. Cinnaholic's written statement is accepted as proof of Termination of the Franchise Agreement. After the Internet Companies have transferred all Franchisee's Interest in such Internet Web Sites and Listings to Franchisor, the franchisee will have no further interest in, or obligations under, such Internet Web Sites and Listings, but will remain liable to the Internet Companies for sums the franchisee is obligated to pay such Internet Companies for obligations Franchisee incurred before the date Cinnaholic duly accepted the transfer of such Interest, or for any other obligations not subject to the Franchise Agreement or this Internet Listing Agreement.
This requirement ensures that Cinnaholic maintains control over its brand's online presence and reputation, even after a franchise agreement ends. It is a fairly standard practice in franchising to ensure brand consistency and protect intellectual property.