What is the definition of 'Franchise Agreement' in the context of a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer franchises for the operation of a bakery which offers custom gourmet cinnamon rolls and other food products and beverages we authorize, under the form of Franchise Agreement attached to this Disclosure Document as Exhibit C (the "Franchise Agreement"). Under the Franchise Agreement, you will operate your Bakery at a designated location. Additionally, your Bakery will be permitted to offer catering services to homes and businesses located within a 10 mile radius of your Bakery. In connection with our CINNAHOLIC® concept, we may develop various specialty food products which we may sell under the brand and also under other brands we may create and develop in the future.
You will operate each Bakery to be developed under the Development Agreement under a separate Franchise Agreement. Upon establishing each additional outlet under the Development Agreement, a developer may be required to sign a then-current Franchise Agreement, which may differ from the current Franchise Agreement included within this FDD. The Franchise Agreement will grant you a protected territory (the "Franchise Territory"), the size and scope of which will be determined on a case-by-case basis by considering the population, traffic flow, presence of businesses, location of competitors (including other CINNAHOLIC® franchisees), demographics and other market conditions surrounding the location of the Bakery. The Franchise Territory may not be unilaterally altered, and the continuation of the Franchise Territory during the term of the Franchise Agreement does not depend on a certain sales or revenue volume or market penetration. We may not operate, or permit any other person to operate, a CINNAHOLIC® Bakery in the Franchise Territory during the term of the Franchise Agreement; although, we may distribute products, or permit others to distribute products, which are the same or similar to those offered by CINNAHOLIC® Bakeries, whether under the Marks or under other trademarks, trade names, service marks, logos or other commercial symbols and through any channel of distribution or method other than a CINNAHOLIC® Bakery within the Franchise Territory, including sales through catalogs, e-commerce, mail order, kiosks, mass merchandise, grocery stores, supermarkets, mom & pops, gourmet shops, warehouse clubs, and convenience and other stores, even if you sell these products at your Bakery. We may also operate or permit others to operate CINNAHOLIC® bakeries at non-traditional locations within your Franchise Territory such as sports stadiums, arenas, universities and schools, hospitals, airports, shopping malls, and the like.
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, the Franchise Agreement, a form of which is attached as Exhibit C, grants the franchisee the right to operate a Cinnaholic bakery at a specific location. This agreement allows the franchisee to offer custom gourmet cinnamon rolls, along with other approved food and beverage items. Additionally, franchisees are permitted to provide catering services to homes and businesses within a 10-mile radius of their bakery.
The Franchise Agreement also stipulates that Cinnaholic may develop and sell specialty food products under its brand or other brands it may create in the future. The franchisee is expected to adhere to the terms of the Franchise Agreement and the confidential operations manual, which will be provided during training. Franchisees are only allowed to offer products and services that have been previously approved by Cinnaholic.
Furthermore, the Franchise Agreement includes the granting of a protected territory, referred to as the "Franchise Territory." The size and scope of this territory are determined on a case-by-case basis, considering factors such as population, traffic flow, the presence of other businesses, the location of competitors (including other Cinnaholic franchisees), demographics, and other market conditions. The Franchise Territory cannot be unilaterally altered, and its continuation does not depend on specific sales or revenue volumes or market penetration. Cinnaholic is restricted from operating or allowing others to operate a Cinnaholic bakery within the Franchise Territory during the term of the Franchise Agreement. However, Cinnaholic retains the right to distribute similar products through other channels, such as e-commerce, grocery stores, and non-traditional locations like sports stadiums and airports, even within the franchisee's territory.