Upon termination or expiration of the Cinnaholic Franchise Agreement, what is the franchisee required to discontinue at the franchised site?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
overnmental authority having jurisdiction over this Agreement limit Franchisee's ability to pay, and Franchisor's ability to receive, such liquidated damages, Franchisee shall be liable to Franchisor for any and all damages which it incurs, now or in the future, as a result of Franchisee's default under this Agreement.
22.2. Obligations upon Termination or Expiration. 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;
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, a franchisee must discontinue all use of Cinnaholic's Marks at the franchised site. This includes refraining from using any signs, products, paper goods, and other items bearing the Marks.
If the franchisee is unable to remove signs containing Cinnaholic's Marks within one day of termination or expiration, they must completely cover them. The franchisee then has up to 10 days from the termination or expiration date to remove the signs entirely.
Additionally, 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. These modifications are intended to prevent any impression that the agreement is still in effect or that the franchisee is connected with Cinnaholic in any way, and also to avoid violating the non-compete agreement.