Does the definition of 'Competitive Business' for Cinnaholic include businesses that grant franchises or licenses to others?

According to Cinnaholic's 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that grant franchises or licenses to others. Specifically, the FDD states that a Competitive Business means any business operating, or granting franchises or licenses to others to operate, a bakery or other food service business engaged in the retail or wholesale production or sale of baked goods, including cinnamon rolls and other baked goods.

This definition has significant implications for a Cinnaholic franchisee. During the term of the franchise agreement and for one year after, the franchisee is restricted from having any direct or indirect interest in a Competitive Business. This restriction extends not only to businesses that directly operate bakeries or food service businesses but also to those that franchise or license others to do so.

The restriction applies if the Competitive Business derives more than 50% of its revenue from the sale of cinnamon rolls. This means a Cinnaholic franchisee is prohibited from owning or working for another bakery or food service business that either directly competes with Cinnaholic or franchises/licenses others to do so, if that business relies heavily on cinnamon roll sales. This non-compete clause is standard in franchising to protect the brand and market share of the franchise system.