What rights are protected within the Cinnabon Area of Protection regarding Streetside Locations?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
specified in Section 10.1.E. (Local Marketing Obligation)) shall
not exceed 5% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We and the Co-Branded Franchisor will jointly collect the Advertising Contribution from you based on the Net Sales of the entire Co-Branded Franchise.
- 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.
- 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.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, a franchisee is granted certain protected rights within their designated Area of Protection concerning Streetside Locations. Specifically, Cinnabon 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 during the term of the agreement. Streetside Locations are defined as 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.
However, this protection has limitations. Cinnabon reserves the right to establish or license franchises and/or company-owned businesses offering similar products or services outside the Area of Protection, in Other Locations (such as airports, malls, universities) inside or outside the Area of Protection, or in businesses other than Swirl Businesses inside or outside the Area of Protection, including co-branded businesses with Carvel. This means that while a franchisee has exclusive rights to a Cinnabon Swirl Business at a Streetside Location within their protected area, Cinnabon can still operate or franchise other types of locations or co-branded businesses in the same area.
For franchisees considering a co-branded location with Auntie Anne's or Carvel, Cinnabon provides similar protections. During the term, Cinnabon will not establish or operate, nor license any other person to establish or operate, a Business operating under the Cinnabon marks and system that is co-branded and co-located with an Auntie Anne's or Carvel business at a Streetside Location within the Area of Protection. These Co-Branded Businesses do not include single-branded Businesses or businesses that do not include the exact combination of multiple brands as the Co-Branded Business. This ensures that the franchisee's co-branded location has some level of protection from direct competition from other Cinnabon and Auntie Anne's or Carvel co-branded locations within the Streetside Locations of their Area of Protection.