For a Cinnabon Carvel Co-Branded Bakery, does the Area of Protection restrict Cinnabon from establishing a business operating under the Cinnabon Swirl™ mark?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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. [For Auntie Anne's Co-Branded Bakeries:] During the Term, we will not establish or operate, nor license any other person to establish or operate, a Business operating under the Marks and the System that is co-branded and co-located with an Auntie Anne's® business that is operated under the Auntie Anne's® marks and(a "Co-Branded 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). Co-Branded Businesses do not include single-branded Businesses and businesses that do not include the exact combination of multiple brands as the Co-Branded Business (such as a Business that is co-branded with a brand other than the Auntie Anne's® brand or that is multibranded with the Auntie Anne's® brand and one or more other brands).
[For Carvel Co-Branded Bakeries:] During the Term, we will not establish or operate, nor license any other person to establish or operate, a Business operating under the Marks and the System that is co-branded and co-located with a Carvel® business that is operated under the Carvel® marks and system (a "Co-Branded 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).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, the Area of Protection for a Cinnabon Carvel co-branded bakery does not prevent Cinnabon from establishing a Cinnabon Swirl™ business at Other Locations. The FDD states that during the term of the agreement, Cinnabon will not establish or operate, nor license anyone else to establish or operate, a co-branded business at a Streetside Location within the Area of Protection. However, this restriction does not apply to single-branded businesses or businesses operating under the Cinnabon Swirl™ mark.
Furthermore, Cinnabon reserves the right to establish or license franchises and/or company-owned businesses offering similar products or services under the Cinnabon marks or any other marks in Other Locations inside or outside the Area of Protection, or in businesses other than Swirl Businesses inside or outside the Area of Protection. Other Locations include locations such as airports, amusement parks, malls, and universities.
In summary, while the Area of Protection provides some exclusivity for the co-branded Cinnabon Carvel bakery at Streetside Locations, Cinnabon retains the right to establish Cinnabon Swirl™ businesses at Other Locations, even within the Area of Protection granted to the franchisee. This is a critical consideration for prospective franchisees as it clarifies the scope and limitations of the protected territory.