Does a Cinnabon franchisee have any protected or exclusive rights under the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 4.1 (Reserved Rights): The following provisions are added to Section 4.1 of the Agreement.
[For Streetside Locations:]
A. Area of Protection. We grant you a protected territory in which you have certain limited exclusive rights (an "Area of Protection"). [Your Area of Protection is: a . mile [OR block] radius from the Accepted Location with the Accepted Location as the center point.] [OR] [We will designate, in our sole discretion, your Area of Protection after we accept the Proposed Location as the Accepted Location. When we designate the Area of Protection for the Franchised Business, 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.
When we designate the Area of Protection for the Franchised Business, 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.
During the Term, we will not establish or operate, nor license any other person to establish or operate, a Swirl 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).
- C.
Other Locations. "Other Locations" include all locations other than Streetside Locations, including airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, military bases, malls (enclosed and open air), outlet malls and centers, sports and entertainment venues, train stations, transportation centers, travel plazas, truck stops, universities, zoos, and Delivery Kitchens. "Delivery Kitchens" include kitchens devoted to the preparation of products or Approved Products (often referred to as ghost, dark, or cloud kitchens), which may use the Marks and may deliver to customers located anywhere.
- 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).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the agreement regarding protected rights varies based on the location type. For Streetside Locations, Cinnabon grants a protected territory, referred to as an "Area of Protection," where the franchisee has limited exclusive rights. This Area of Protection is typically a specified radius (e.g., a certain mile or block radius) from the approved location. Cinnabon will not establish or license another to establish a Swirl Business at a Streetside Location within this area during the term of the agreement.
However, this protection is limited to Streetside Locations, which include freestanding, inline, and endcap locations on city streets or in shopping centers, excluding enclosed and open-air malls and outlet malls. For Other Locations, such as airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, military bases, malls (enclosed and open air), outlet malls and centers, sports and entertainment venues, train stations, transportation centers, travel plazas, truck stops, universities, zoos, and Delivery Kitchens, there is no protected territory.
Cinnabon and its affiliates retain all rights not expressly granted to the franchisee. This includes the right to establish franchises or company-owned businesses offering similar products or services outside the Area of Protection, in Other Locations (inside or outside the Area of Protection), or in businesses other than Swirl Businesses (including co-branded businesses). For franchisees, this means that while they may have some territorial protection for Streetside Locations, Cinnabon can still operate or franchise other locations and alternative channels of distribution, potentially impacting the franchisee's business.