Are Cinnaholic franchisees allowed to provide delivery services?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Subject to this maximum mileage requirement, you may provide catering and delivery services in another franchisee's franchise territory without compensating the other franchisee, and other CINNAHOLIC® franchisees may provide the same services in your Franchise Territory without compensating you. You may not ship products within or without your Franchise Territory. 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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 41–42)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are permitted to provide both delivery and catering services. Specifically, a Cinnaholic franchisee can deliver products from their bakery within or outside their designated franchise territory. However, this is limited to catering services and must be within a reasonable distance from the bakery, not exceeding 10 miles. All deliveries must be made via ground transportation.
Subject to the 10-mile radius restriction, Cinnaholic franchisees can offer catering and delivery services in other franchisees' territories, and vice versa, without any obligation to compensate each other. This creates a cooperative environment where franchisees can extend their reach without infringing on each other's territories.
However, Cinnaholic franchisees are explicitly prohibited from shipping products within or outside their franchise territory. This restriction ensures that the focus remains on local delivery and catering services, maintaining the quality and freshness of the products. Additionally, franchisees are not allowed to sell products at wholesale; sales must be directly to consumers for consumer purposes.