Can a Cinnaholic franchisee face competition from other franchisees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
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 may solicit customers and advertise your Bakery anywhere you choose.
There are no restrictions on you, any of our other franchisees, or us to prevent any soliciting or advertising in someone else's franchise territory.
In addition, you may deliver products from the Bakery within or without your Franchise Territory in connection with providing catering services within a reasonable distance from your Bakery, but not more than 10 miles, provided the deliveries are made by ground transportation.
Under the Franchise Agreement, we and our affiliates have reserved the right to establish anywhere franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within your Franchise Territory) under names and symbols other than the Marks, even if these bakeries or outlets are near your Bakery.
Nevertheless, as of the date of this Disclosure Document, we have no present plans to exercise any of these rights.
We also reserve the right to operate, for ourselves and our affiliates, businesses using the Marks and other marksto distribute products or offer services (including through the Internet, worldwide web, mail order, catalogs or other forms of distribution channels or methods) that may be similar to or different from those found in CINNAHOLIC® Bakeries, both within and outside your Franchise Territory, so long as we do not do so through the operation of a CINNAHOLIC® Bakery.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee may face competition from other franchisees. Specifically, Cinnaholic does not grant exclusive territories to its franchisees. This means that other Cinnaholic franchises, outlets owned by Cinnaholic, or other distribution channels or competitive brands that Cinnaholic controls could operate in the same area.
While Cinnaholic will not operate a Cinnaholic Bakery within a franchisee's designated territory (except at non-traditional locations) as long as the franchisee is in compliance with the Franchise Agreement, there are no restrictions preventing Cinnaholic or other franchisees from soliciting or advertising in another franchisee's territory. Additionally, franchisees can deliver catering services within a reasonable distance, up to 10 miles, of their bakery, even if it means delivering within another franchisee's territory, without any obligation to compensate the other franchisee.
Cinnaholic and its affiliates also retain the right to establish franchises, company-owned bakeries, or outlets selling similar products under different names and symbols, even within a franchisee's territory. They also reserve the right to distribute products through various channels like the internet, mail order, or retail chains, even if those channels operate within a franchisee's territory. However, as of the date of the 2025 Disclosure Document, Cinnaholic states that they have no present plans to exercise these rights.
This lack of territorial exclusivity is a significant factor for prospective franchisees to consider. While Cinnaholic aims to avoid direct competition from its own branded bakeries within a franchisee's territory, the potential for competition from other franchisees, alternative distribution channels, and other concepts owned by Cinnaholic or its affiliates exists and could impact a franchisee's sales and profitability.