Does Cinnabon retain rights not specifically granted to the franchisee under the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, we and our affiliates retain all the rights that we do not specifically grant to you. For example, without limitation, we retain the following rights, without providing any rights or compensation to you:
- (i) We and/or our affiliates may establish or license franchises and/or companyowned businesses offering products or services that are similar or identical to the Approved Products using the System or elements of the System under the Proprietary Marks or any other marks anywhere, including at or near your Accepted Location.
- (ii) If you operate a Co-Branded Bakery (other than a Swirl Bakery) in a Streetside Location and we have granted you an Area of Protection, we and/or our affiliates may establish or license franchises and/or company or affiliate-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 Proprietary Marks or any other marks 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 Co-Branded Bakeries (excluding Swirl Bakeries) inside or outside the Area of Protection.
If you operate a Swirl Bakery in a Streetside Location and we have granted you an Area of Protection, we and/or our affiliates may establish or license franchises and/or company or affiliate-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 Proprietary Marks or
any other marks 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 Bakeries inside or outside the Area of Protection (including Carvel Co-Branded Bakeries).
- (iii) We and/or our affiliates may produce and/or sell Approved Products or any other products or services, and authorize others to produce and/or sell Approved Products or any other products or services, using the Proprietary Marks, the System, and any other marks and/or systems we desire through any alternative channel of distribution located anywhere, including to and through (a) supermarkets, convenience stores, club stores, and other retail facilities not dedicated to the sale of the Approved Products, (b) mail order and e-commerce channels, and (c) 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.
- (iv) We and/or our affiliates may advertise, or authorize others to
Source: Item 12 — Territory (FDD pages 82–87)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon and its affiliates retain all rights not specifically granted to the franchisee in the Franchise Agreement. This means that while a franchisee is granted certain rights to operate their Cinnabon bakery, Cinnabon reserves the authority to engage in activities that could potentially compete with the franchisee's business.
Specifically, Cinnabon retains the right to establish or license franchises and/or company-owned businesses that offer similar or identical products and services under the Cinnabon brand or other brands, even at or near a franchisee's location. For Co-Branded Bakeries (other than Swirl Bakeries) or Swirl Bakeries in Streetside Locations with an Area of Protection, Cinnabon can establish similar businesses outside 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) or Swirl Bakeries inside or outside the Area of Protection (including Carvel Co-Branded Bakeries).
Furthermore, Cinnabon and its affiliates can produce and sell approved products through alternative channels of distribution, such as supermarkets, convenience stores, e-commerce, and ghost kitchens, without providing any compensation to the franchisee. They also retain the right to revise catering and delivery policies and make exceptions as they apply to franchisees. These retained rights allow Cinnabon to explore various market opportunities and distribution channels, which may impact individual franchisees. A prospective franchisee should consider these reserved rights and potential competitive scenarios when evaluating the Cinnabon franchise opportunity.