If the franchisee retains possession of the franchised site after termination of the Cinnaholic agreement, what modifications are required?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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, if a franchisee retains possession of the franchised site after termination or expiration of the franchise agreement, they are responsible for making modifications to the site. Specifically, the franchisee must, at their own expense, make reasonable modifications to both the exterior and interior décor of the bakery. These modifications must be sufficient to eliminate any identification of the location as a Cinnaholic bakery. The purpose of these changes is to ensure that the site no longer appears to be associated with the Cinnaholic brand and to prevent any violation of the non-compete agreement.
Cinnaholic has the right to specify the modifications required to remove the brand's identity from the location. If the franchisee fails to make these required modifications, Cinnaholic has the option to take action to modify the site themselves. In such cases, the franchisee will be responsible for covering the costs incurred by Cinnaholic for these modifications, and must pay Cinnaholic immediately. This ensures that Cinnaholic can promptly remove its branding from a former franchise location, protecting its brand identity and reputation.
This requirement is a standard practice in franchising to prevent consumer confusion and protect the franchisor's brand. Franchisees should be aware of these potential post-termination expenses and factor them into their financial planning. It is important for prospective franchisees to understand the full scope of their obligations upon termination, including the potential costs associated with modifying the site to remove Cinnaholic branding.