Where may a Cinnaholic franchisee establish their Bakeries in the Area of Responsibility?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
greements**. 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. The Development Agreement will expire on the day after operations of the final Bakery to be established under the Development Agreement are required to begin as provided on the Development Schedule. The Development Agreement will not grant any protected territory, exclusivity or other rights in which to establish your Bakeries in the Area of Responsibility. You may establish your Bakeries at any location within the Area of Responsibility provided we consent to the location, which may be withheld or granted in our sole discretion, the location is in a state where we are permitted to sell CINNAHOLIC® franchises, and the Bakery is not located in the franchise territory granted to another CINNAHOLIC® franchisee. Within our sole discretion, we may consider a location proposed by you outside your Area of Responsibility.
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.
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, a franchisee may establish their Bakeries at any location within their designated Area of Responsibility. However, this is contingent upon Cinnaholic granting consent to the location. Cinnaholic has the sole discretion to withhold or grant this approval. The location must also be in a state where Cinnaholic is permitted to sell franchises, and it cannot be within the franchise territory granted to another Cinnaholic franchisee.
Notably, the Development Agreement does not grant any protected territory, exclusivity, or other rights for establishing Cinnaholic Bakeries within the Area of Responsibility. This means that while a franchisee has an Area of Responsibility, they do not have exclusive rights to every location within that area. Cinnaholic retains significant control over site selection.
Cinnaholic may also consider a location proposed by the franchisee outside of their Area of Responsibility, but this is also at Cinnaholic's sole discretion. A typical Cinnaholic Bakery occupies approximately 700-1200 square feet of space and may be located in a freestanding building, an in-line retail plaza space, or an end-cap space. Ample parking, good visibility, and prominent signage are necessities for any location.