Can Cinnabon or its affiliates establish or license franchises that offer similar or identical products/services to my Cinnabon franchise?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
arketing Obligation (as specified in Section 10.1.E. (Local Marketing Obligation)) shall
not exceed 5% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We and the Co-Branded Franchisor will jointly collect the Advertising Contribution from you based on the Net Sales of the entire Co-Branded Franchise.
- Section 4.1 (Reserved Rights): The following provisions are added to Section 4.1 of the Agreement.
[For Streetside Locations:]
A. Area of Protection. We grant you a protected territory in which you have certain limited exclusive rights (an "Area of Protection"). [Your Area of Protection is: a _.__ mile [OR block] radius from the Accepted Location with the Accepted Location as the center point.] [OR] [We will designate, in our sole discretion, your Area of Protection after we accept the Proposed Location as the Accepted Location. When we designate the Area of Protection for the Franchised Business, you must sign standard documentation we prepare, which includes a general release, to document the Area of Protection.] If you relocate the Franchised Business pursuant to Section 5.5 (Relocation of the Franchised Business), we will specify an Area of Protection for the new location.
B. Protected Rights. During the Term, we will not establish or operate, nor license any other person to establish or operate, a Swirl 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).
C. Other Locations. "Other Locations" include all locations other than Streetside Locations, including airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, military bases, malls (enclosed and open air), outlet malls and centers, sports and entertainment venues, train stations, transportation centers, travel plazas, truck stops, universities, zoos, and Delivery Kitchens. "Delivery Kitchens" include kitchens devoted to the preparation of products or Approved Products (often referred to as ghost, dark, or cloud kitchens), which may use the Marks and may deliver to customers located anywhere.
D. Our Reserved Rights. 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).
(ii) We and/or our affiliates may produce and/or sell Approved Products or any other products or services, and authorize others to produce and/or sell Approved Products or any other products or services, using the Marks, the System, and any other marks and/or systems we desire through any alternative channel of distribution located anywhere, including to and through (a) supermarkets, convenience stores, club stores, and other retail facilities not dedicated to the sale of the Approved Products, (b) mail order and e-commerce channels, and (c) Delivery Kitchens.
(iii) We and/or our affiliates may advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside any Area of Protection.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the ability of Cinnabon and its affiliates to establish or license franchises offering similar products depends on the location type of your Cinnabon franchise. For 'Streetside Locations' (freestanding, inline, and endcap locations on city streets or in shopping centers, excluding malls and outlet malls), Cinnabon will not establish, operate, or license others to operate a 'Swirl Business' within your Area of Protection during the term of your agreement. However, for 'Other Locations' (airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, military bases, malls, outlet malls, sports venues, train stations, transportation centers, travel plazas, truck stops, universities, zoos and Delivery Kitchens), you do not have any protected or exclusive rights.
Cinnabon and its affiliates retain all rights not expressly granted to you, meaning they can conduct business activities under any name, in any geographic area, and at any location, regardless of proximity to or effect on your franchise if you operate in an 'Other Location'. This includes the right to establish or license franchises or company-owned businesses offering similar or identical products using the Cinnabon system or elements of it, anywhere, including near your location. They can also sell approved products through alternative channels like supermarkets, e-commerce, and ghost kitchens, which may deliver anywhere.
Furthermore, Cinnabon and its affiliates can advertise anywhere and may acquire or merge with entities that have similar or competitive businesses. They can convert these businesses to Cinnabon franchises, allow them to continue operating under another name, or permit the businesses to operate independently. This broad reservation of rights means that Cinnabon retains significant flexibility in how it expands and manages its brand, which could potentially impact a franchisee's business depending on their location type.