If a Cinnaholic franchisee terminates the agreement, are they still bound by post-termination obligations?
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 described in the agreement must be strictly adhered to by the franchisee. These obligations include returning all confidential information and materials, discontinuing the use of Cinnaholic's trademarks, modifying the franchise site to remove Cinnaholic branding, and refraining from operating in a way that suggests a connection to Cinnaholic.
Specifically, the franchisee must return all materials containing confidential information, operating instructions, business practices, or methods, including the Operations Manual. They must also discontinue using Cinnaholic's trademarks on signs, products, and paper goods. Any signs with Cinnaholic's marks that cannot be removed within one day of termination must be completely covered until removal within 10 days. The franchisee is responsible for modifying the bakery's interior and exterior to eliminate its identification as a Cinnaholic bakery.
Additionally, the franchisee must not operate under any name or manner that implies a connection with Cinnaholic or the right to use the Cinnaholic system or marks. These post-termination obligations are designed to protect Cinnaholic's brand and confidential information even after the franchise agreement ends. Franchisees should carefully review all post-termination obligations outlined in the franchise agreement to understand their responsibilities upon termination.