What rights does a Cinnaholic franchisee assign to the franchisor upon termination or expiration of the franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement, whether by reason of lapse of time, default in performance, abandonment of the Bakery or other cause or contingency, Franchisee shall:
(i) forthwith return to Franchisor all material furnished by Franchisor containing confidential information, operating instructions, business practices, or methods or procedures, including, without limitation, the Operations Manual;
(ii) discontinue at the Franchised Site all use of the Marks, and the 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;
(iv) refrain from operating or doing business under any name or in any manner that may give the general public the impression that this Agreement is still in force or that Franchisee is connected in any way with Franchisor or that Franchisee has the right to use the CINNAHOLIC® System or the Marks;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is obligated to transfer certain rights back to Cinnaholic. Specifically, the franchisee must return all materials containing confidential information, operating instructions, business practices, or methods and procedures, including the Operations Manual. This ensures that Cinnaholic's proprietary information remains protected and is not used by the former franchisee after the agreement ends.
Additionally, the franchisee must discontinue all use of Cinnaholic's trademarks (the Marks) at the franchised site, including on signs, products, paper goods, and other items. If the franchisee cannot remove signs containing the Marks within one day of termination or expiration, they must completely cover them until removal, which must occur within 10 days. This prevents any continued association of the franchisee with the Cinnaholic brand, which could mislead the public.
Furthermore, if the franchisee retains possession of the franchised site, they are responsible for making reasonable modifications to the exterior and interior décor of the bakery to eliminate its identification as a Cinnaholic bakery. This includes changes necessary to avoid violating the non-compete provision. The franchisee must also refrain from operating under any name or manner that could give the impression that the agreement is still in effect or that they are connected with Cinnaholic. These measures collectively ensure a clear separation between the former franchisee and the Cinnaholic brand, protecting Cinnaholic's reputation and preventing unfair competition.