What proof of termination of the Franchise Agreement will Internet Companies accept from Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.4 Certification of Termination. Franchisee hereby directs the Internet Companiesto accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Internet Companies will accept Cinnaholic's written statement, signed by an officer or agent of Cinnaholic, as conclusive proof that the Franchise Agreement has been terminated. This directive is part of the Internet Listing Agreement that franchisees must adhere to. The agreement ensures that upon termination, all rights and interests in internet web sites and listings related to the bakery or Cinnaholic's marks are transferred to Cinnaholic.
This arrangement simplifies the process for Cinnaholic to regain control over its brand's online presence when a franchise agreement ends. By accepting Cinnaholic's written statement, Internet Companies avoid the need for potentially complex legal documentation or franchisee consent. This allows for a swift transfer or termination of web sites and listings, maintaining brand consistency and preventing misuse of Cinnaholic's online assets by former franchisees.
However, the franchisee remains responsible for any outstanding payments or obligations owed to the Internet Companies that were incurred before Cinnaholic formally accepts the transfer of interest. This includes any obligations not covered under the Franchise Agreement or the Internet Listing Agreement. Franchisees should be aware that even after the transfer of internet assets, they are still liable for pre-existing debts with Internet Companies.