Can Cinnaholic franchisees provide catering and delivery services in another franchisee's territory without compensating them?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ithout 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.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are permitted to provide catering and delivery services within a reasonable distance of their bakery, up to a maximum of 10 miles, even if it means operating in another franchisee's territory. These deliveries must be made via ground transportation.
This arrangement means that Cinnaholic franchisees do not have to compensate other franchisees when providing catering and delivery services in their territories. Similarly, other Cinnaholic franchisees can offer the same services within your territory without any obligation to compensate you. This creates a competitive environment where franchisees can expand their reach without incurring additional costs related to territory overlap.
This policy is important for prospective franchisees to understand, as it clarifies the boundaries of their operational rights and potential competition. While franchisees can solicit customers and advertise anywhere, the ability to provide catering and delivery services across territories without compensation can be a significant advantage. However, franchisees should be aware of the potential for increased competition from other franchisees in nearby areas.