Can other affiliate-owned or franchised Cinnabon Bakeries compete directly with my Cinnabon Bakery, even if they are in close proximity?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We may open or franchise new Bakeries near your Bakery (unless we are restricted from doing so in your Area of Protection (if any)) without consulting you, giving you the first right to open them, or paying you any compensation. Other affiliate-owned or franchised Bakeries near your Bakery that are already in existence or opened later under Franchise Agreements may (i) compete directly with you, (ii) provide services in close proximity to your Bakery without compensating you, and (iii) possibly adversely affect the operation of your Bakery or your development of Bakeries.
Source: Item 12 — Territory (FDD pages 82–87)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, franchisees may face competition from other Cinnabon bakeries, including those owned by affiliates or other franchisees. Except for Co-Branded Bakeries in Streetside Locations that may receive an Area of Protection, Cinnabon does not grant exclusive territories. This means that other Cinnabon locations can be established near a franchisee's bakery and compete directly.
Cinnabon and its affiliates retain the right to establish or license franchises and/or company-owned businesses that offer similar or identical products using the Cinnabon system and trademarks anywhere, including near a franchisee's location. They can also sell approved products through alternative channels of distribution, such as supermarkets, e-commerce, and ghost kitchens, without restriction. Furthermore, Cinnabon can acquire or merge with other entities that operate similar or competitive businesses, even within a franchisee's Area of Protection (if any), and convert those businesses to Cinnabon bakeries or allow them to continue operating under another name.
For franchisees of Co-Branded Bakeries in Streetside Locations, there are limited protected territorial rights in an Area of Protection. However, even with this protection, Cinnabon can operate or license single-branded Cinnabon bakeries, Swirl Bakeries, or Carvel Co-Branded Bakeries inside or outside the Area of Protection. The Area of Protection, if granted, will not exceed a one-block radius in urban locations or a one-mile radius in non-urban locations, and there is no minimum Area of Protection. Cinnabon determines the size and scope of the Area of Protection on a case-by-case basis, considering factors such as market demand, demographics, income, and the location of competitors.
In summary, a Cinnabon franchisee should be aware that the franchise agreement does not guarantee an exclusive territory, and competition from other Cinnabon outlets is possible. The only exception is for Co-Branded Bakeries in Streetside Locations, which may receive limited territorial protection. Prospective franchisees should carefully consider the potential impact of competition when evaluating a Cinnabon franchise opportunity.