What does the Cinnaholic Franchise Agreement grant?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
chise**. 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.
A typical CINNAHOLIC® Bakery occupies approximately 700-1200 square feet of space that may be either owned by you or leased from a third party. All Bakeries are constructed to our specifications as to format, size, layout, décor, and the like. A CINNAHOLIC® Bakery may be located in either in a freestanding building, an in-line retail plaza space or an end-cap space, but, in any event, ample parking, good visibility, and availability of prominent signage are a necessity. A CINNAHOLIC® Bakery will employ approximately 5 to 15 persons. Depending on your staffing needs, some of these employees may not work full time.
You will operate a CINNAHOLIC® Bakery, at your expense, as an independent business utilizing our business format, procedures, designs, trade dress, standards, specifications, and methods of operation. You must use the CINNAHOLIC® franchise system at your Bakery, which includes, without limitation, the common use and promotion of the name CINNAHOLIC® and other service marks, trademarks, trade names, logos, emblems, signs, slogans, insignia and other commercial symbols we may designate periodically (collectively, the "Marks"); distinctive food products, recipes and quality standards; procedures for inventory and management control; training; advertising and promotional programs; and ongoing assistance. We may periodically add or delete products and/or services and change specifications, standards, procedures, and methods of operation, and you will be expected to follow suit. You will offer and provide products and services to the general public, at all times complying with the Franchise Agreement and our confidential operations manual (the "Operations Manual") that will be loaned to you at the time of training. You may only offer services and products that we have previously approved.
Competition. CINNAHOLIC® Bakeries compete primarily with other cinnamon roll bakeries, such as Cinnabon®, bakeries in general and bakery cafes that offer similar menus, including regional and national chains and franchise systems. The cinnamon roll bakery business is very competitive which is often driven by strong price competition, however, we believe that we have created a niche market with CINNAHOLIC® bakery by creating a specialty bakery with a unique quality, custom gourmet products, trade dress and appearance which is easily distinguishable from other cinnamon roll bakeries. Previous business management experience is helpful for new franchisees, and previous bakery or restaurant management experience is highly desirable. Previous business ownership experience also is highly desirable.
The Agreements. You must enter into a Market Development Agreement, the current form of which is attached to this Disclosure Document as Exhibit B (the "Development Agreement"). Under the Development Agreement, you must develop, open and operate an agreed upon number of Bakeries located in an area of responsibility (the "Area of Responsibility") in accordance with an agreed upon development schedule (the "Development Schedule"). You must enter into a Development Agreement even if you will establish only one Bakery. There is no preset minimum or maximum number of Bakeries that you may agree to establish in connection with a Development Agreement. The number of Bakeries to be developed is negotiated between you and us on a case-by-case basis.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the Franchise Agreement grants the franchisee the right to operate a Cinnaholic bakery at a designated location. This includes offering custom gourmet cinnamon rolls and other approved food and beverage products. Additionally, franchisees are permitted to provide catering services to homes and businesses within a 10-mile radius of their bakery.
The Franchise Agreement also requires franchisees to operate their bakery utilizing Cinnaholic's business format, procedures, designs, trade dress, standards, specifications, and methods of operation. This includes the use and promotion of the Cinnaholic name and other trademarks, distinctive food products, recipes, quality standards, inventory and management control procedures, training, advertising and promotional programs, and ongoing assistance. Cinnaholic may periodically add or delete products and/or services and change specifications, standards, procedures, and methods of operation, which the franchisee is expected to implement.
Furthermore, 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 the FDD. The Franchise Agreement will grant 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. Cinnaholic 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, Cinnaholic 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. Cinnaholic 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.