Can other Cinnaholic franchisees provide catering and delivery services within a Cinnaholic franchisee's exclusive territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor acknowledges and agrees that Franchisee may provide catering and delivery services within a reasonable distance from the Franchised Site not to exceed 10 miles, within or without the Franchise Territory, but solely in connection with providing such catering and delivery services and provided such services are made by ground transportation.
Subject to the foregoing maximum mileage restriction, Franchisee may provide catering and delivery services in the exclusive territories of other CINNAHOLIC® franchisees, and other CINNAHOLIC® franchisees may provide the same services in the Franchise Territory.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are permitted to provide catering and delivery services within a 10-mile radius of their location, regardless of whether this extends into another franchisee's exclusive territory. Similarly, other Cinnaholic franchisees are allowed to offer catering and delivery services within a franchisee's designated territory. These services must be provided via ground transportation.
This policy means that while Cinnaholic grants a specific territory, that protection has some limitations. Franchisees need to be aware that other franchisees can solicit catering and delivery business within their territory, potentially impacting their sales. This arrangement encourages competition among franchisees, but it also means that franchisees must actively market and promote their catering and delivery services to maintain their market share.
For a prospective Cinnaholic franchisee, it's crucial to understand the dynamics of catering and delivery services within the franchise system. Franchisees should consider how this shared territory for catering and delivery might affect their business plan and revenue projections. They should also inquire about strategies for managing competition and maximizing their catering and delivery sales within their territory.