Does the Cinnaholic franchisor reserve rights regarding catering and delivery services?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4.
Catering and Delivery Services.
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.
4. INITIAL FRANCHISE FEE
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 franchised site. This radius can extend both within and outside of the franchisee's exclusive territory, provided that the services are conducted via ground transportation.
Cinnaholic franchisees are allowed to offer catering and delivery services in other franchisees' exclusive territories, and vice versa. This creates a shared opportunity for franchisees to expand their customer base beyond their immediate area.
However, Cinnaholic also retains specific rights. The franchisor can offer and sell products or services identified by their trademarks through various distribution channels, including the internet and delivery services, even within a franchisee's territory. These sales cannot be made from a Cinnaholic Bakery located in the Franchise Territory. This means that while franchisees can engage in local catering and delivery, Cinnaholic reserves the right to pursue broader distribution strategies that may overlap with a franchisee's territory.