Under what circumstances is a Cinnaholic franchisee required to transfer their interest in Internet Web Sites and Listings?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Transfer.
On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately direct all Internet Service Providers, domain name registries, Internet search engines, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Internet Web Sites and Listings: (i) to transfer all of Franchisee's Interest in such Internet Web Sites and Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Internet Web Sites and Listings, Franchisee will immediately direct the Internet Companies to terminate such Internet Web Sites and Listings or will take such other actions with respect to the Internet Web Sites and Listings as Franchisor directs.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee is required to transfer their interest in Internet Web Sites and Listings under specific circumstances. Upon termination of the Franchise Agreement, the franchisee must immediately direct all Internet Companies to transfer all of the franchisee's interest in such Internet Web Sites and Listings to Cinnaholic. This includes domain names, hypertext markup language, uniform resource locator addresses, access to corresponding Internet web sites, and the right to hyperlink to certain web sites and listings on various Internet search engines related to the Bakery or the Marks. The franchisee must also execute any documents and take any actions necessary to complete this transfer.
Additionally, Cinnaholic has the right to request this transfer periodically. If Cinnaholic does not want to accept the Internet Web Sites and Listings, the franchisee must terminate them or take other actions as directed by Cinnaholic. To facilitate these actions, the franchisee grants Cinnaholic the power of attorney to direct Internet Companies to transfer or terminate the listings and to execute necessary documents.
This agreement ensures that Cinnaholic maintains control over the brand's online presence and marketing efforts. The franchisee relinquishes all rights and obligations related to the Internet Web Sites and Listings after the transfer is complete, although they remain liable for any outstanding payments owed to the Internet Companies for obligations incurred before the transfer. This arrangement is typical in franchising, where the franchisor seeks to maintain consistent brand representation and customer experience across all locations.