factual

What is the geographic scope of the post-term restrictive covenants for a Cinnabon franchise?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Section 15.4.B. (Restrictive Covenants: Post Term) of the Franchise Agreement is revised to limit the geographical extent of the post-term covenant not to compete to an area of reasonable size, for all franchises sold in the State of Indiana.

Source: Item 23 — Receipts (FDD pages 114–399)

What This Means (2025 FDD)

The 2025 Cinnabon Franchise Disclosure Document does not specify the geographic scope of the post-term restrictive covenant. However, it does state that for franchises sold in Indiana, Section 15.4.B. of the Franchise Agreement, which addresses post-term restrictive covenants, is revised to limit the geographical extent of the covenant to an area of reasonable size.

For prospective Cinnabon franchisees outside of Indiana, the FDD does not offer specific details on the geographic limitations of the post-term covenant not to compete. This means that the restriction's scope could vary and might potentially cover a broad area, depending on what is deemed reasonable under the agreement and applicable laws.

It is important for potential franchisees to seek clarification from Cinnabon regarding the specific geographic scope of the post-term covenant not to compete in their specific state or territory. Consulting with a franchise attorney to understand the enforceability and implications of such covenants in their jurisdiction is also advisable. This will help in making an informed decision about investing in a Cinnabon franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.