Is Carvel allowed to operate or license a Co-Branded Business within the Area of Protection of a Streetside Location?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, we will not establish or operate, nor license any other person to establish or operate, a Business operating under the Marks and the System that is co-branded and co-located with a Cinnabon® business that is operated under the Cinnabon® marks and system (a "Co-Branded Business") at a Streetside Location within the Area of Protection. "Streetside Locations" include freestanding, inline, and endcap locations on city streets or in shopping centers (including power centers, lifestyle centers, and strip centers, but excluding malls (enclosed and open air) and outlet malls and centers).
Co-Branded Businesses do not include single-branded Businesses, businesses that operate under the Cinnabon Swirl™ mark, and businesses that do not include the exact combination of multiple brands as the Co-Branded Business (such as a Business that is co-branded with a brand other than the Cinnabon® brand or that is multi-branded with the Cinnabon® brand and one or more other brands).
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, Carvel grants franchisees an Area of Protection for Streetside Locations, which includes freestanding, inline, and endcap locations on city streets or in shopping centers, excluding enclosed and open-air malls and outlet malls and centers.
During the franchise term, Carvel will not establish, operate, or license anyone else to establish or operate a co-branded business with Cinnabon under the Carvel marks and system within the franchisee's Area of Protection for Streetside Locations. This protection specifically applies to businesses co-branded and co-located with a Cinnabon business operating under the Cinnabon marks and system.
However, this restriction does not extend to single-branded Carvel businesses, businesses operating under the Cinnabon Swirl™ mark, or businesses that do not have the exact combination of Carvel and Cinnabon. Carvel and its affiliates retain the right to establish or license franchises and company-owned businesses offering similar or identical products outside the Area of Protection, in Other Locations (such as airports, malls, and transportation centers) inside or outside the Area of Protection, or in businesses other than Swirl Businesses inside or outside the Area of Protection, including businesses co-branded with both Carvel and Cinnabon brands.