What specific actions is Cinnaholic authorized to take regarding the franchisee's telephone numbers and listings upon termination?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
poses of this Telephone Listing Agreement. Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including, without limitation, this Telephone Listing Agreement. Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
- (i) Direct the Telephone Companies to transfer all Franchisee's Interest in and to the Telephone Numbers and Listings to Franchisor;
- (ii) Direct the Telephone Companies to terminate any or all of the Telephone Numbers and Listings; and
- (iii) Execute the Telephone Companies' standard assignment forms or other documents in order to affect such transfer or termination of Franchisee's Interest.
- 2.4 Certification of Termination. Franchisee hereby directs the Telephone Companies that they shall 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.
- 2.5 Cessation of Obligations. After the Telephone Companies have duly transferred all Franchisee's Interest in such Telephone Numbers and Listings to Franchisor, as between Franchisee and Franchisor, Franchisee will have no further Interest in, or obligations under, such Telephone Numbers and Listings.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, Cinnaholic has specific authority regarding the franchisee's telephone numbers and listings. Cinnaholic can direct telephone companies to transfer all of the franchisee's interest in the telephone numbers and listings to Cinnaholic. Alternatively, Cinnaholic can direct the telephone companies to terminate any or all of the franchisee's telephone numbers and listings. To execute these actions, Cinnaholic is authorized to sign the telephone companies' standard assignment forms or other necessary documents to transfer or terminate the franchisee's interest.
To ensure the telephone companies act according to Cinnaholic's instructions, the franchisee directs the telephone companies to accept Cinnaholic's written statement, signed by an officer or agent, as conclusive proof that the Franchise Agreement has been terminated. Once the telephone companies have transferred the telephone numbers and listings to Cinnaholic, the franchisee no longer has any interest in or obligations related to those listings, except for any outstanding payments or obligations incurred before the transfer date that are not covered by the Franchise Agreement or the Telephone Listing Agreement.
This agreement regarding telephone listings survives the termination of the Franchise Agreement, meaning these conditions remain in effect even after the franchise relationship ends. The franchisee is also responsible for all costs and expenses related to their performance, nonperformance, or Cinnaholic's enforcement of the Telephone Listing Agreement. This includes indemnifying Cinnaholic against any losses or claims related to the agreement.