Does a Cinnaholic franchisee have a right of first refusal to acquire additional franchises?

According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees do not have a right of first refusal to acquire additional franchises or establish additional Cinnaholic bakeries. This means that Cinnaholic is not obligated to offer existing franchisees the first opportunity to open new locations in a specific area. Cinnaholic retains the discretion to offer new franchises to whomever they choose, including new franchisees, without giving existing franchisees priority.

This lack of right of first refusal has significant implications for Cinnaholic franchisees looking to expand their business. Without this right, a franchisee may find that Cinnaholic awards a new franchise to someone else in an area where the franchisee hoped to expand. This can limit the franchisee's growth potential and potentially increase competition in their market area.

In the franchise industry, right of first refusal is not uniformly granted. Some franchisors offer it as an incentive for good performance and expansion, while others, like Cinnaholic, prefer to maintain flexibility in awarding new franchises. Prospective franchisees should consider this factor when evaluating the growth opportunities within the Cinnaholic system and how it aligns with their long-term business goals.

Furthermore, the FDD states that Cinnaholic and its affiliates reserve the right to establish franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within a franchisee's territory) under names and symbols other than the Cinnaholic marks. This further emphasizes the non-exclusive nature of the franchise agreement and the potential for competition from within the Cinnaholic system itself.