Does the execution of the Developer Agreement grant the Developer any rights to use Cinnaholic's trademarks or system?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges and agrees that (i) until a Franchise Agreement has been entered into for a specific Bakery, Developer shall not have, nor be entitled to exercise, any of the rights, powers and privileges granted by the Franchise Agreement, including, without limitation, the right to use the Marks or the CINNAHOLIC® System; (ii) the execution of this Agreement shall not be deemed to grant any such rights, powers or privileges to Developer; and (iii) Developer may not under any circumstances commence operations of any CINNAHOLIC® Bakery before Franchisor's execution of a Franchise Agreement for that particular Bakery.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, signing the Developer Agreement does not grant the Developer any rights to use Cinnaholic's trademarks or system. The Developer only gains these rights upon entering into a Franchise Agreement for a specific bakery.
Specifically, the Developer cannot exercise any rights granted by the Franchise Agreement, including using Cinnaholic's trademarks or the Cinnaholic system, until a Franchise Agreement is in place for a particular bakery. Starting operations of a Cinnaholic bakery is prohibited until Cinnaholic executes a Franchise Agreement for that specific location.
This means that the Developer Agreement solely provides the right to develop Cinnaholic bakeries according to a schedule and within an area, but it does not allow the developer to operate under the Cinnaholic brand or utilize its system until the individual franchise agreements are finalized. This is a common practice in area development franchise agreements, where the initial agreement focuses on development rights rather than immediate operational rights.