Does a Cinnaholic developer have the right to impose conditions on the development of other Cinnaholic Bakeries?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges and agrees that by virtue of this Agreement and the Area of Responsibility, Developer does not have exclusive territorial rights, protected territory, or other rights to exclude, control or impose conditions on the location or development of other or future CINNAHOLIC® Bakeries or on Franchisor's activities, except as may be provided in an applicable Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a developer does not have the right to impose conditions on the development of other Cinnaholic bakeries. The agreement specifies that the developer's rights are non-exclusive, meaning they cannot control or impose conditions on the location or development of other Cinnaholic bakeries or on Cinnaholic's activities. This applies to future Cinnaholic bakeries as well.
Cinnaholic retains the right to establish and operate, or grant to other franchisees or licensees, the right to establish and operate Cinnaholic bakeries or any other business using the Cinnaholic name and associated trademarks. This can occur in any location, including within the developer's Area of Responsibility, and under any terms and conditions that Cinnaholic deems appropriate. Cinnaholic also reserves the right to develop, use, and franchise the rights to any trade names, trademarks, service marks, logos, or copyrights not designated as Cinnaholic's marks for similar or different franchise systems, without granting the developer any rights.
Furthermore, Cinnaholic has the right to offer, ship, sell, and provide products or services identified by the marks to customers located anywhere through any distribution channel, including grocery stores, convenience stores, the Internet, and delivery services, both within and outside the Area of Responsibility, without compensating the developer. Cinnaholic can also own, operate, franchise, or license bakeries of any other type under different marks anywhere, even in close proximity to the developer's bakeries. These stipulations emphasize that the developer's rights are limited to the specific development schedule and area outlined in their agreement, without broader control over the Cinnaholic brand's expansion.