Can Cinnabon, its affiliates, or other Cinnabon franchisees solicit or service customers within a franchisee's Area of Protection?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- (iv) We and/or our affiliates may acquire, be acquired by, or merge with another entity with existing businesses or franchises that are similar to or competitive with the Businesses anywhere and (a) convert the other businesses to be Businesses operating under the Marks and the System (except to be Swirl Businesses inside your Area of Protection), (b) permit the other businesses to continue to operate under another name anywhere, and/or (c) permit the businesses to operate under another name and convert your Franchised Business and existing Businesses to such other name.
- E. Acknowledgements. You acknowledge that we, our affiliates, and our and their other franchisees may solicit customers in, and service customers who are from, any geographic location we or they desire, including locations within your Area of Protection, and that we, our affiliates, and other franchisees may provide Catering Services and Delivery Services within your Area of Protection.
- F. Modification of Area of Protection. If you (i) commit a default that cannot be cured as specified in Section 17.2 (Our Termination: No Opportunity to Cure) or if you fail to cure a default within the cure period specified in Section 17.3 (Our Termination: Opportunity to Cure Within Cure Period) and (ii) we do not exercise our right to terminate the Agreement, we may, at our sole election and upon delivery of written notice to you, temporarily or permanently eliminate or reduce the size of your Area of Protection, in addition to any other remedies specified in Section 17.5 (Our Remedies After Your Default).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon, its affiliates, and other franchisees have the right to solicit and service customers within a franchisee's Area of Protection. This includes providing catering and delivery services within the protected area. This acknowledgement is part of the franchise agreement.
Cinnabon and its affiliates also retain the right to produce and sell approved products through alternative channels of distribution, such as supermarkets, convenience stores, e-commerce, and delivery kitchens, regardless of a franchisee's Area of Protection. They can also advertise anywhere, including inside and outside the Area of Protection.
Furthermore, Cinnabon has the right to acquire or merge with other entities that have similar or competitive businesses. They can convert these businesses to Cinnabon franchises (except for Swirl Businesses inside the franchisee's Area of Protection), allow them to operate under another name, or convert the franchisee's business to another name. A franchisee's Area of Protection may be modified (eliminated or reduced) if the franchisee defaults on the agreement and Cinnabon does not terminate the agreement.