Besides offering franchises, what other sales activities are Cinnabon or its affiliates involved in?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to offering franchises, we or our affiliates also sell products to (i) wholesale accounts that offer Cinnabon® products at retail, such as supermarkets, convenience stores, club stores and other similar retail outlets and (ii) unaffiliated branded restaurants and retail stores that we permit to sell one or more Cinnabon® branded products.
You may also compete with the distribution and sale of Cinnabon® branded products through other outlets and sales channels. We may sell, or license affiliates or third parties to sell, Cinnabon® branded products (including products that you are likely to sell in your Bakery) (i) at wholesale to restaurants and retail stores (including grocery stores, convenience stores, club stores, and other outlets) that may be located anywhere, (ii) through non-traditional outlets, (iii) through mail order and Internet sales, (iv) through ghost or delivery kitchens, or (v) through other company-owned or franchised Bakeries. You will not be entitled to additional rights or compensation in any of these cases. See Item 12 for details regarding our reserved rights.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–25)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, in addition to offering franchises, Cinnabon or its affiliates engage in other sales activities. These include selling products to wholesale accounts, such as supermarkets, convenience stores, and club stores, that offer Cinnabon products at retail. They also sell to unaffiliated branded restaurants and retail stores that are permitted to sell Cinnabon branded products.
This means that prospective Cinnabon franchisees may face competition from other sales channels, including wholesale distribution and sales through various retail outlets. These outlets may sell the same Cinnabon branded products that franchisees offer in their bakeries. The FDD specifies that these other outlets may be located anywhere.
Cinnabon also reserves the right to sell its branded products through non-traditional outlets, mail order, internet sales, ghost or delivery kitchens, and other company-owned or franchised bakeries. The FDD clearly states that franchisees are not entitled to additional rights or compensation as a result of these alternative sales channels. This is a common practice in franchising, allowing franchisors to diversify their revenue streams and expand brand presence, but it's crucial for franchisees to understand they will likely face competition from these channels.