Does the Cinnaholic Franchisee have the right to exclude, control, or impose conditions on the location or development of other franchises under the Marks?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee does not have the right to exclude, control, or impose conditions on the location or development of other franchises under the Marks. The franchise granted is non-exclusive, meaning Cinnaholic retains the right to establish or grant franchises to others, even within the franchisee's territory, with some exceptions.

Specifically, Cinnaholic may establish franchises at destination locations such as airports, stadiums, schools, universities, hospitals, malls, and shopping center food courts, even if these are within a franchisee's territory. Additionally, Cinnaholic can sell products identified by the Marks through various distribution channels like grocery stores, the Internet, and delivery services, irrespective of their proximity to the franchisee's bakery, as long as these sales are not made from another Cinnaholic bakery within the franchisee's territory.

This lack of exclusivity means that a Cinnaholic franchisee faces the risk of competition from other Cinnaholic outlets or alternative sales channels established by the franchisor. While the franchisee is granted a Franchise Territory, this protection is limited, and Cinnaholic retains significant control over where and how its brand is developed. This is a common practice in franchising, allowing franchisors to expand their brand presence and explore different market segments, but it's crucial for potential franchisees to understand the extent of their territorial protection and the potential for internal competition.