Can other bakery or restaurant concepts owned by Cinnaholic or its affiliates be established near a Cinnaholic Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Other bakery or restaurant concepts owned now or in the future by us or our affiliates may be established in close proximity to your Bakery.
Under the Franchise Agreement, we and our affiliates have reserved the right to establish anywhere franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within your Franchise Territory) under names and symbols other than the Marks, even if these bakeries or outlets are near your Bakery.
Nevertheless, as of the date of this Disclosure Document, we have no present plans to exercise any of these rights.
You have no right to use the Marks in connection with any business other than a CINNAHOLIC® Bakery.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic or its affiliates can establish other bakery or restaurant concepts near a franchisee's Cinnaholic Bakery. Specifically, the FDD states that "other bakery or restaurant concepts owned now or in the future by us or our affiliates may be established in close proximity to your Bakery." This means that a Cinnaholic franchisee could face competition from other food businesses owned by Cinnaholic, even if those businesses are located nearby.
This is a significant factor for potential franchisees to consider. While franchisees receive a designated territory, it may not prevent Cinnaholic itself from opening competing concepts in the same area. The FDD also states that Cinnaholic and its affiliates have reserved the right to establish franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within your Franchise Territory) under names and symbols other than the Marks, even if these bakeries or outlets are near your Bakery.
It is important to note that as of the date of the 2025 Disclosure Document, Cinnaholic states that they have no present plans to exercise any of these rights. However, the reservation of these rights in the Franchise Agreement means that Cinnaholic retains the option to do so in the future. Prospective franchisees should carefully evaluate the potential impact of such competition on their business before investing in a Cinnaholic franchise.
Furthermore, the FDD emphasizes that franchisees have no right to use the Cinnaholic marks in connection with any business other than a Cinnaholic Bakery. This restriction limits a franchisee's ability to diversify or operate other food-related businesses using the Cinnaholic brand, while Cinnaholic retains the flexibility to introduce new concepts that may compete with existing franchise locations.