If a Cinnaholic franchisee terminates the agreement, are their post-termination obligations waived?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of termination by Franchisee, all post-termination obligations of Franchisee described herein shall not be waived but shall be strictly adhered to by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee terminates the agreement, all post-termination obligations are not waived and must be strictly adhered to by the franchisee. This means that even if the franchisee decides to end the franchise agreement, they are still bound by certain responsibilities outlined in the agreement.
These post-termination obligations include, but are not limited to, returning all confidential information and materials to Cinnaholic, discontinuing the use of Cinnaholic's trademarks and signage, modifying the franchise site to remove any identification as a Cinnaholic bakery, and refraining from operating in a manner that suggests a continued affiliation with Cinnaholic. These obligations are designed to protect Cinnaholic's brand and confidential information, even after a franchise agreement ends.
For a prospective Cinnaholic franchisee, this means understanding that terminating the agreement does not release them from all responsibilities. They must be prepared to fulfill these post-termination obligations, which can involve costs such as site modifications and potential legal consequences for non-compliance. It is important to carefully review the franchise agreement to fully understand the scope of these obligations and their potential impact.