Can the Cinnaholic franchisor establish a Cinnaholic Bakery outside the Franchise Territory?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic retains specific rights regarding the establishment of bakeries outside a franchisee's territory. Cinnaholic has the right to establish and operate, or grant to other franchisees or licensees the right to establish and operate, a Cinnaholic Bakery or any other business using Cinnaholic's trademarks and systems in any location outside the Franchise Territory. This can be done under any terms and conditions that Cinnaholic deems appropriate.

This means that while a Cinnaholic franchisee is granted a specific territory, Cinnaholic maintains the freedom to expand its brand presence outside of that territory through company-owned stores, other franchisees, or licensees. The terms and conditions for these establishments are entirely at Cinnaholic's discretion.

For a prospective franchisee, this indicates that while they will have a protected territory, Cinnaholic's growth strategy may involve opening additional locations nearby, potentially impacting the franchisee's market reach. It is important to understand Cinnaholic's long-term development plans and how they might affect the franchisee's business. Franchisees should inquire about Cinnaholic's criteria for establishing new locations and how they balance the interests of existing franchisees with the overall growth of the brand.