For a Cinnabon Streetside Location, what rights does the franchisor reserve regarding businesses that are co-branded with both the Carvel® and Cinnabon® brands?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Cinnabon and its affiliates retain all rights not explicitly granted to the franchisee. This includes the right to establish or license franchises and/or company-owned businesses that offer similar or identical products or services to the approved products, utilizing the Cinnabon system or elements of it, under the Cinnabon marks or any other marks.
Specifically, Cinnabon reserves the right to operate or license others to operate businesses that are co-branded with both Carvel® and Cinnabon® brands. This right extends to locations outside the franchisee's Area of Protection, to Other Locations inside or outside the Area of Protection, or in businesses other than Swirl Businesses inside or outside the Area of Protection.
This reservation of rights means that a Cinnabon franchisee's protected territory does not prevent Cinnabon from opening or licensing co-branded Cinnabon/Carvel locations nearby, as long as those locations are not Streetside Locations within the franchisee's Area of Protection. This is a significant consideration for prospective franchisees, as it highlights the limitations of the Area of Protection and the potential for competition from other Cinnabon-affiliated businesses, especially those with co-branded concepts.