Upon expiration or termination of the Cinnaholic Franchise Agreement, what happens to the rights granted to the franchisee?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.4. Effect of Expiration or Termination. Upon the expiration or termination of this Agreement for any reason, any and all rights granted to Franchisee hereunder shall be extinguished immediately, and Franchisee shall not be relieved of any of its obligations, debts or liabilities hereunder. The expiration or termination of this Agreement for any reason will be without prejudice to the rights of Franchisor against Franchisee and will not destroy or diminish the binding force and effect of any of the provisions of this Agreement that expressly, or by reasonable implication, come into or continue in effect on or after the expiration or termination hereof.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement for any reason, all rights granted to the franchisee are immediately extinguished. This means the franchisee no longer has any rights to operate a Cinnaholic bakery, use the Cinnaholic marks, or operate under the Cinnaholic system.
Additionally, the franchisee remains responsible for any outstanding obligations, debts, or liabilities to Cinnaholic, even after the agreement ends. The termination or expiration does not affect Cinnaholic's rights against the franchisee, and any provisions of the agreement that are meant to continue after termination will remain in effect.
In practical terms, a franchisee losing their rights must immediately cease all Cinnaholic-related operations. This includes removing signage, discontinuing the use of Cinnaholic's trademarks, and returning any confidential materials. This ensures a clean break and prevents any confusion that the franchisee is still affiliated with the Cinnaholic brand. This is a standard practice in franchising to protect the brand's integrity and prevent unauthorized use of its intellectual property.