Under what circumstances can Cinnabon operate or license others to operate single-branded Bakeries or Carvel Co-Branded Bakeries within or outside the Area of Protection of a Cinnabon Swirl Bakery?

According to the 2025 Cinnabon Franchise Disclosure Document, if a franchisee operates a Cinnabon Swirl Bakery in a Streetside Location and has been granted an Area of Protection, Cinnabon retains the right to operate or license others to operate single-branded Bakeries or Carvel Co-Branded Bakeries both inside and outside that Area of Protection. This means that even with an Area of Protection for a Swirl Bakery, Cinnabon can still establish or allow other franchisees to establish single-branded Cinnabon bakeries or Cinnabon co-branded with Carvel, potentially in direct competition with the Swirl Bakery.

Cinnabon's right to establish or license other franchises extends beyond just single-branded or Carvel co-branded bakeries. Cinnabon and its affiliates can establish or license franchises or company-owned businesses that offer similar or identical products using the Cinnabon system or trademarks anywhere outside the Area of Protection. They can also do so in "Other Locations" both inside and outside the Area of Protection, and in businesses other than Swirl Bakeries, including Carvel Co-Branded Bakeries.

This reservation of rights highlights a potential risk for Cinnabon Swirl Bakery franchisees. While they may receive an Area of Protection, it does not prevent Cinnabon from establishing competing businesses, including single-branded or Carvel co-branded locations, which could impact the Swirl Bakery's revenue and market share. Prospective franchisees should carefully consider the potential for competition from other Cinnabon-branded businesses when evaluating the Swirl Bakery franchise opportunity.