Can Cinnaholic consider a location proposed by you outside your Area of Responsibility?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must enter into a Market Development Agreement, the current form of which is attached to this Disclosure Document as Exhibit B (the "Development Agreement"). Under the Development Agreement, you must develop, open and operate an agreed upon number of Bakeries located in an area of responsibility (the "Area of Responsibility") in accordance with an agreed upon development schedule (the "Development Schedule"). You must enter into a Development Agreement even if you will establish only one Bakery. There is no preset minimum or maximum number of Bakeries that you may agree to establish in connection with a Development Agreement. The number of Bakeries to be developed is negotiated between you and us on a case-by-case basis. The Development Agreement will expire on the day after operations of the final Bakery to be established under the Development Agreement are required to begin as provided on the Development Schedule. The Development Agreement will not grant any protected territory, exclusivity or other rights in which to establish your Bakeries in the Area of Responsibility. You may establish your Bakeries at any location within the Area of Responsibility provided we consent to the location, which may be withheld or granted in our sole discretion, the location is in a state where we are permitted to sell CINNAHOLIC® franchises, and the Bakery is not located in the franchise territory granted to another CINNAHOLIC® franchisee. Within our sole discretion, we may consider a location proposed by you outside your Area of Responsibility.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must develop and operate bakeries within a designated Area of Responsibility, as outlined in the Market Development Agreement. This agreement specifies the number of bakeries to be opened according to an agreed-upon development schedule. The Development Agreement does not grant any protected territory, exclusivity, or other rights to establish your Bakeries in the Area of Responsibility.
However, Cinnaholic retains the discretion to consider a location proposed by a franchisee that falls outside of their assigned Area of Responsibility. The FDD specifies that Cinnaholic's consent is required for any location within the Area of Responsibility, and this consent can be withheld or granted at Cinnaholic's sole discretion. Additionally, the location must be in a state where Cinnaholic is permitted to sell franchises and not within another franchisee's protected territory.
This flexibility provides an opportunity for franchisees to potentially expand beyond their initial territory, but it is not guaranteed. Franchisees should discuss their expansion plans with Cinnaholic and understand the criteria used to evaluate locations outside the Area of Responsibility. This ensures that any proposed location aligns with Cinnaholic's strategic goals and does not infringe on the rights of other franchisees.