What is the exception that allows Cinnaholic to operate a bakery within a franchisee's territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
y. Bakeries located at sites we view as non-traditional locations (e.g. airports, malls, high-rise buildings, business, and industrial complexes) will have a Franchise Territory limited to the site of the Bakery. As long as you are in compliance with the Franchise Agreement, we will not operate a CINNAHOLIC® Bakery within your Franchise Territory (except that we reserve the right to operate or develop CINNAHOLIC® Bakeries within your Franchise Territory at non-traditional locations), and we will not authorize anyone else to do so. You will operate your Bakery only from the approved site, and you must receive our permission before you relocate your Bakery. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests.
You may solicit customers and advertise your Bakery anywhere you choose.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, while franchisees are granted a territory, it is typically non-exclusive, meaning they may face competition from other franchisees, company-owned outlets, or other brands. Cinnaholic does offer some territorial protection, stating that as long as a franchisee is in compliance with the Franchise Agreement, Cinnaholic will not operate a Cinnaholic bakery within the franchisee's territory, nor will they authorize anyone else to do so. However, this protection has a notable exception.
Cinnaholic reserves the right to operate or develop Cinnaholic bakeries within a franchisee's territory at "non-traditional locations." These non-traditional locations include sites such as airports, malls, high-rise buildings, and business or industrial complexes. Bakeries in these locations will have a Franchise Territory limited to the site of the Bakery. This means that Cinnaholic could potentially open a location within a franchisee's territory if it is deemed a non-traditional site, which could impact the franchisee's business.
This exception is important for prospective franchisees to consider, as it limits the scope of their territorial protection. While Cinnaholic aims to avoid direct competition within a franchisee's primary territory, the presence of a Cinnaholic bakery in a non-traditional location nearby could still draw customers and affect sales. Franchisees should carefully evaluate the potential for such non-traditional locations within their territory and understand the implications for their business before investing in a Cinnaholic franchise.