Will a Cinnaholic franchisee receive an exclusive territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement. You will receive the right to operate a CINNAHOLIC® Bakery only at a site we approve, in our sole discretion. The site will be designated in the Franchise Agreement. Your Franchise Territory will be negotiated by you and us before you sign the Franchise Agreement and specifically described in the Franchise Agreement. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. In negotiating the Franchise Territory, we may examine population, traffic flow, presence of businesses, location of competitors (including other CINNAHOLIC® franchisees), demographic, and other market conditions. There is no minimum Franchise Territory and the size of the Franchise Territory will range from being the approved site designated for your Bakery to an area 1.5 miles around the Bakery. A Franchise Territory that is designated as being the approved site for the Bakery will not have any exclusivity. Bakeries located at sites we view as non-traditional locations (e.g. airports, malls, high-rise buildings, business, and industrial complexes) will have a Franchise Territory limited to the site of the Bakery. 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 will operate your Bakery only from the approved site, and you must receive our permission before you relocate your Bakery. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests.
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.
No party is obligated to pay compensation to any other party for soliciting customers from the other franchisee'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.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The Franchise Territory will be negotiated between the franchisee and Cinnaholic before signing the Franchise Agreement and will be specifically described in the Franchise Agreement. This territory can range from just the approved site of the bakery to an area 1.5 miles around it. If the territory is only the approved site, there is no exclusivity.
Cinnaholic retains the right to operate or develop Cinnaholic bakeries within the franchisee's territory at non-traditional locations such as airports, malls, high-rise buildings, and business complexes. Franchisees may face competition from other franchisees, outlets that Cinnaholic owns, other distribution channels, or competitive brands that Cinnaholic controls. Cinnaholic will not operate a Cinnaholic bakery within the franchisee's Franchise Territory as long as the franchisee complies with the Franchise Agreement, except for the right to operate or develop Cinnaholic bakeries within the Franchise Territory at non-traditional locations.
Cinnaholic and its affiliates can establish franchises and/or company-owned bakeries selling similar products under different names and symbols, even within a franchisee's territory. They also reserve the right to distribute products or offer services similar to those found in Cinnaholic bakeries through various channels, including the internet and mail order, both within and outside the Franchise Territory, as long as it is not through the operation of a Cinnaholic bakery. Franchisees are allowed to solicit customers and advertise anywhere they choose, and there are no restrictions preventing soliciting or advertising in another franchisee's territory. Franchisees may deliver products for catering services within a reasonable distance, but not more than 10 miles, using ground transportation, even outside their territory, without compensating other franchisees.