After termination or expiration of the Cinnaholic franchise agreement, what must the franchisee refrain from using or disclosing?
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:
(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;
(v) refrain from making use of or availing itself to any of the confidential information, Operations Manual or other information received from Franchisor or disclosing or revealing any the same in violation of Section 20.3 hereof;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, after the franchise agreement terminates or expires, the franchisee must refrain from certain activities. Specifically, the franchisee must not operate under any name or manner that suggests the agreement is still in effect or that they are connected with Cinnaholic. They cannot give the impression that they have the right to use the Cinnaholic system or its trademarks.
Additionally, the franchisee is prohibited from using or availing themselves of any confidential information, the Operations Manual, or other information received from Cinnaholic. They also cannot disclose or reveal any of this information. This restriction is tied to Section 20.3 of the agreement, which likely outlines the specific confidential information covered.
These post-termination obligations are standard in franchising to protect the brand's proprietary information and prevent unfair competition. Franchisees should carefully review Section 20.3 to understand the full scope of what is considered confidential information and the duration of these restrictions, as some information may be considered a trade secret with longer-lasting restrictions.