For Cinnaholic Bakeries located at non-traditional locations, what is the extent of the Franchise Territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ge from being the approved site designated for your Bakery to an area 1.5 miles around the Bakery. A Franchise Territory that is designated as being the approved site for the Bakery will not have any exclusivity. Bakeries located at sites we view as non-traditional locations (e.g. airports, malls, high-rise buildings, business, and industrial complexes) will have a Franchise Territory limited to the site of the Bakery. As long as you are in compliance with the Franchise Agreement, we will not operate a CINNAHOLIC® Bakery within your Franchise Territory (except that we reserve the right to operate or develop CINNAHOLIC® Bakeries within your Franchise Territory at non-traditional locations), and we will not authorize anyone else to do so. You will operate your Bakery only from the approved site, and you must receive our permission before you relocate your Bakery. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests.
You may solicit customers and advertise your Bakery anywhere you choose.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchise territory for bakeries located at non-traditional locations is limited to the site of the bakery. Non-traditional locations include places such as airports, malls, high-rise buildings, and business or industrial complexes. This means that a Cinnaholic franchisee operating in a non-traditional location will not have any exclusive territory beyond the physical space of their approved site.
This limited territory has significant implications for franchisees. They may face direct competition from other Cinnaholic outlets or other brands within the same non-traditional location. For example, another Cinnaholic or a similar bakery could open in a different part of the same mall or airport. The franchisee's ability to attract customers will depend heavily on the specific location within the larger complex and their marketing efforts within that limited space.
Despite the limited territory, Cinnaholic franchisees can still solicit customers and advertise their bakery anywhere they choose. They can also deliver products for catering services within a reasonable distance, up to 10 miles, using ground transportation, even outside their immediate territory. However, they are restricted from shipping products outside their territory and cannot operate outside of the approved location without permission from Cinnaholic. This is a common practice in franchising, where franchisors often retain control over distribution channels and protect territories to some extent, although Cinnaholic does not offer exclusive territories in most cases.
It's important to note that Cinnaholic reserves the right to operate or develop other Cinnaholic bakeries within a franchisee's territory at non-traditional locations. This means that even if a franchisee has a traditional location with a territory extending up to 1.5 miles, Cinnaholic could still open another bakery within that territory in a non-traditional location. This highlights the importance of carefully considering the specific location and potential competition when investing in a Cinnaholic franchise.