Can a Cinnaholic franchisee establish a Bakery at any location within their Area of Responsibility?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Agreement will specify an Area of Responsibility within which you will focus your development efforts. Under the Development Agreement, you are not granted a territory, exclusive or otherwise, within which to develop your Bakery(s). Under the Development Agreement, we will determine or approve the location of future units and any territories for those units, and the then-current standards for sites and territories will apply. You may establish a Bakery at any location within your Area of Responsibility provided that we consent to the location, which may be granted or withheld in our sole discretion, the location is in a state where we are permitted to sell CINNAHOLIC® franchises, and the location is not located in another franchisee's franchise territory or area of responsibility. We will notify you of those areas which have been assigned to franchisees, either as exclusive territories or areas of responsibility. We do not intend to grant a large number of franchise territories, although we intend to grant other franchisees areas of responsibility within which they will concentrate their development efforts. An area of responsibility is a geographic territory within which we expect you to concentrate your development efforts. You will have no exclusive territorial rights, protected territory or other rights to exclude, control or impose conditions on the location or development of other or future franchises under the Marks or on our activities, except as may be provided in an applicable Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee's ability to establish a bakery within their Area of Responsibility is subject to specific conditions and the franchisor's approval. While the Development Agreement specifies an Area of Responsibility for development efforts, it does not grant exclusive territorial rights.
A Cinnaholic franchisee can establish a Bakery at any location within their Area of Responsibility if Cinnaholic consents to the location, the location is in a state where Cinnaholic is permitted to sell franchises, and the location is not within another franchisee's territory or area of responsibility. Cinnaholic retains the sole discretion to grant or withhold location approval. Cinnaholic will notify franchisees of areas assigned to others, whether as exclusive territories or areas of responsibility.
This means that even within an assigned Area of Responsibility, a Cinnaholic franchisee does not have the autonomy to choose a location without Cinnaholic's explicit consent. The franchisee also faces the risk of being unable to establish a bakery if the desired location is already within another franchisee's territory or in a state where Cinnaholic cannot sell franchises. This lack of locational exclusivity and the need for franchisor approval are important factors for prospective franchisees to consider.
The FDD also states that Cinnaholic intends to grant other franchisees areas of responsibility within which they will concentrate their development efforts. An area of responsibility is a geographic territory within which Cinnaholic expects a franchisee to concentrate their development efforts. Franchisees will 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 franchises under the Marks or on Cinnaholic's activities, except as may be provided in an applicable Franchise Agreement.