For a Cinnabon Co-Branded Bakery in a Streetside Location, what is the extent of the protected rights granted within the Area of Protection?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
akeries in Streetside Locations.
The Franchise Agreement licenses you to manufacture and sell Approved Products at retail only from the specific Bakery location that we accepted. We do not grant you any exclusive territory or other territorial rights under these agreements other than the right to sell Approved Products at retail from the Bakery.
Limited Protected Territorial Rights for Co-Branded Bakeries in Streetside Locations
This Section applies only to Co-Branded Bakeries in Streetside Locations.
If you operate a Co-Branded Bakery in a Streetside Location, while you will not receive an exclusive territory, you will receive a territory with limited protected rights (an "Area of Protection") as described in this Item. For a Co-Branded Bakery (other than a Swirl Bakery), this means that, during the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, another Co-Branded Bakery (other than a Swirl Bakery) at a Streetside Location within the Area of Protection. For the avoidance of doubt, we may operate, or license others to operate, single-branded Bakeries, Swirl Bakeries, or Bakeries that do not include the exact combination of brands as the Co-Branded Bakery (such as a Bakery that is co-branded with a brand other than the second brand in the Co-Branded Bakery or that is multi-branded with such second brand and one or more other brands).
If you operate a Swirl Bakery in a Streetside Location, during the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, another Swirl Bakery at a Streetside Location within the Area of Protection. For the avoidance of
doubt, we may operate, or license others to operate, single-branded Bakeries or Carvel Co-Branded Bakeries inside or outside the Area of Protection.
We may negotiate your Area of Protection with you. 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.
Source: Item 12 — Territory (FDD pages 82–87)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees operating a Co-Branded Bakery in a Streetside Location receive limited protected territorial rights, referred to as an "Area of Protection." This means that during the term of the Franchise Agreement, Cinnabon will not establish or operate, nor license any other person to establish or operate, another Co-Branded Bakery (other than a Swirl Bakery) at a Streetside Location within the Area of Protection. However, Cinnabon retains the right to operate or license others to operate single-branded Bakeries, Swirl Bakeries, or Bakeries that do not include the exact combination of brands as the Co-Branded Bakery within or outside the Area of Protection.
The size and scope of the Area of Protection for a Cinnabon Co-Branded Bakery is determined on a case-by-case basis and will be specified in the Franchise Agreement. 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) or a one-mile radius for a Bakery in any non-urban location. There is no minimum Area of Protection for a Bakery. Factors considered when determining the size of the Area of Protection include market demand, demographics, median household income, presence of other businesses, location of competitors, traffic patterns, access and visibility, location of other Bakeries, future development plans, and other market conditions.
It's important to note that Cinnabon reserves several rights, even within the Area of Protection. They may establish or license franchises and/or company or affiliate-owned businesses offering similar products or services anywhere outside of the Area of Protection, in Other Locations inside or outside the Area of Protection, or in businesses other than Co-Branded Bakeries (excluding Swirl Bakeries) inside or outside the Area of Protection. Cinnabon also retains the right to produce and/or sell Approved Products through alternative channels of distribution, such as supermarkets, convenience stores, e-commerce, and ghost kitchens, located anywhere. Furthermore, Cinnabon may acquire or merge with another entity with existing businesses that are similar to or competitive with the Bakery anywhere, including inside and outside the Area of Protection.
If a Cinnabon franchisee defaults under the Franchise Agreement and fails to cure the default, Cinnabon has the right to reduce or eliminate the Area of Protection. Otherwise, the Area of Protection may not be altered before the expiration or termination of the Franchise Agreement. The territorial protection is not dependent on achievement of a certain sales volume, market penetration or other factors, other than compliance with the Franchise Agreement.