Can Cinnabon acquire a business that is competitive with a Cinnabon franchise and convert the acquired business to a Cinnabon franchise?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates reserve all rights that we do not expressly grant you in this Agreement.
For example, without limitation, we and our affiliates have the following rights, without providing any rights or compensation to you:
- (i) We and/or our affiliates may establish or license franchises and/or company-owned businesses offering products or services that are similar or identical to the Approved Products using the System or elements of the System under the Marks or any other marks (a) anywhere outside of the Area of Protection, (b) in Other Locations inside or outside the Area of Protection, or (c) in businesses other than Swirl Businesses inside or outside the Area of Protection (including businesses that are co-branded with both the Carvel® and Cinnabon® brands).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon and its affiliates retain specific rights that are not expressly granted to the franchisee. These reserved rights allow Cinnabon to operate or license franchises and company-owned businesses that offer similar or identical products to the approved products using the Cinnabon system or elements of it.
Specifically, Cinnabon can do so under the Cinnabon marks or any other marks in various locations. These locations include (a) anywhere outside of the Area of Protection granted to a franchisee, (b) in Other Locations inside or outside the Area of Protection, or (c) in businesses other than Swirl Businesses inside or outside the Area of Protection, including businesses that are co-branded with both the Carvel® and Cinnabon® brands.
In practical terms, this means that Cinnabon reserves the right to establish or license businesses that might compete with a franchisee's location, provided they fall outside the franchisee's Area of Protection or are in Other Locations such as airports, malls, or big box stores. This also extends to businesses co-branded with Carvel®, giving Cinnabon considerable flexibility in expanding its brand presence without necessarily compensating existing franchisees.