After the Cinnabon franchise agreement expires or terminates, what geographic areas are covered by the post-term restrictive covenant?

According to the 2025 Cinnabon FDD, the geographic extent of the post-term covenant not to compete is limited to an area of reasonable size for all franchises sold in the State of Indiana. This means that if a Cinnabon franchise in Indiana terminates or expires, the franchisee is restricted from operating a competing business within a geographic area deemed reasonable under Indiana law. The specific definition of "reasonable size" is not provided in this excerpt.

For Cinnabon franchises outside of Indiana, the FDD does not specify the geographic area covered by the post-term restrictive covenant. The standard Cinnabon franchise agreement likely contains details about the geographic scope of this restriction, but this excerpt only provides specifics for Indiana franchises.

Prospective Cinnabon franchisees should carefully review Section 15.4.B (Restrictive Covenants: Post Term) of the Franchise Agreement to fully understand the geographic limitations imposed after the termination or expiration of their franchise agreement. Franchisees should seek clarification from Cinnabon regarding what constitutes a "reasonable area" in their specific location, and understand how this restriction could impact their future business opportunities.