Can Cinnaholic alter a franchisee's Franchise Territory without written consent?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We have not established any minimum sales quota and do not require any certain level of sales, revenue volume or market penetration in order for you to maintain your Franchise Territory. We will not reduce the size of your Franchise Territory even if the population in it increases. Likewise, we will not expand the size of your Franchise Territory if the population in it decreases. We cannot alter your Franchise Territory unless you give us your written consent. Any rights that are not specifically granted to you under the Franchise Agreement are retained by us.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic cannot alter a franchisee's territory without obtaining written consent from the franchisee. This provision protects the franchisee's defined market area as agreed upon in the Franchise Agreement.
This protection is significant for prospective Cinnaholic franchisees because it ensures that the territory, once established, remains stable unless the franchisee agrees to a change. This stability allows franchisees to invest in their location with the assurance that Cinnaholic cannot unilaterally reduce or modify their territory, which could negatively impact their business.
However, it is important to note that Cinnaholic franchises do not receive an exclusive territory. Franchisees may face competition from other franchisees, outlets owned by Cinnaholic, or other channels of distribution or competitive brands that Cinnaholic controls. Additionally, Cinnaholic retains the right to operate or develop Cinnaholic Bakeries within the franchisee's territory at non-traditional locations such as airports or malls. While Cinnaholic cannot alter the territory size without consent, these competitive factors should be carefully considered.
Despite the lack of exclusive territories and the potential for competition, the requirement for written consent before altering a franchisee's territory provides a degree of security. This clause ensures that Cinnaholic must negotiate any changes to the territory with the franchisee, giving the franchisee a voice in decisions that could affect their business operations and profitability.