Can Cinnabon or its affiliates establish franchises or company-owned businesses offering similar products under the Cinnabon system near my Accepted Location?

According to Cinnabon's 2025 Franchise Disclosure Document, 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, even at or near a franchisee's Accepted Location. This is explicitly stated as one of Cinnabon's reserved rights under the Franchise Agreement, and franchisees will not receive any compensation for such actions. This condition applies without limitation.

This means that a Cinnabon franchisee could face direct competition from other Cinnabon locations, whether franchised or company-owned, selling the same products under the same brand, regardless of proximity. This lack of territorial exclusivity is a significant factor for prospective franchisees to consider, as it could impact their potential revenue and market share. The FDD does state that the size and scope of the Area of Protection will be in the Franchise Agreement and will be determined on a case-by-case basis. The Area of Protection will not exceed a one-block radius for a Bakery in an urban location (the downtown area of the 100 largest U.S. cities as measured by population as of the effective date of the Franchise Agreement) or a one-mile radius for a Bakery in any non-urban location. There is no minimum Area of Protection for a Bakery.

Cinnabon may also produce and/or sell approved products through alternative channels of distribution, such as supermarkets, convenience stores, club stores, mail order, e-commerce, and ghost kitchens, which may deliver to customers located anywhere. Additionally, Cinnabon and its affiliates can advertise anywhere, further intensifying potential competition for franchisees. Cinnabon also retains the right to acquire or merge with other entities that have similar or competitive businesses, and may convert these businesses to Cinnabon bakeries or allow them to continue operating under another name, even near a franchisee's location.

It is important to note that these competitive actions can occur without Cinnabon consulting the franchisee, offering them the first right to open a new location, or providing any compensation. Existing or later-established affiliate-owned or franchised bakeries may compete directly with a franchisee, provide services in close proximity, and potentially adversely affect the franchisee's operations and development. This lack of territorial protection is a notable risk for prospective Cinnabon franchisees and should be carefully evaluated before investing.