Can Cinnabon acquire a business that is similar to a Cinnabon franchise and convert it to a Cinnabon franchise, or allow it to continue operating under a different name?
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 regarding similar businesses. Cinnabon has the right to establish, operate, or license franchises and company-owned businesses that offer products or services similar or identical to the approved Cinnabon products. These businesses can operate under the Cinnabon marks or other marks.
This right extends to locations outside a franchisee's Area of Protection, in Other Locations (which include airports, malls, and other non-Streetside Locations) inside or outside the Area of Protection, or in businesses other than Swirl Businesses inside or outside the Area of Protection. This includes the right to co-brand with both Carvel and Cinnabon. This means that Cinnabon can operate or allow others to operate similar businesses, potentially in the same markets as existing franchisees, as long as they are not Streetside Locations within the franchisee's Area of Protection.
For a potential franchisee, this indicates that while you may receive an Area of Protection, Cinnabon retains considerable freedom to operate or license similar businesses in various locations and formats, including co-branded locations. This could increase competition in some areas, but also expand the brand's overall presence. Franchisees should carefully consider the definition of Area of Protection and Other Locations to understand the potential for Cinnabon to operate similar businesses nearby.