Does Cinnaholic grant developers the right to control the location of other Cinnaholic Bakeries?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges and agrees that by virtue of this Agreement and the Area of Responsibility, Developer does not have exclusive territorial rights, protected territory, or other rights to exclude, control or impose conditions on the location or development of other or future CINNAHOLIC® Bakeries or on Franchisor's activities, except as may be provided in an applicable Franchise Agreement.
- 2.2.
Reservation of Rights.
Franchisor retains the right, in its sole discretion, to:
(i) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a CINNAHOLIC® Bakery or any other business using the name "CINNAHOLIC®" and all other trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans and insignia developed for use with the CINNAHOLIC System from time to time (collectively, the "Marks"), the CINNAHOLIC® System or any variation of the Marks or the CINNAHOLIC® System, in any location (including inside the Area of Responsibility) and on any terms and conditions that Franchisor deems appropriate;
(ii) develop, use and franchise anywhere the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the CINNAHOLIC® System, without granting Developer any rights therein;
(iii) offer, ship, sell and provide products or services identified by the Marks or other trademarks, service marks, commercial symbols or emblems to customers located anywhere through any distribution channel or method, including grocery stores, convenience stores, the Internet (or any other existing or future form of electronic commerce), and delivery services within and outside the Area of Responsibility, irrespective of the proximity to any Bakery established hereunder without compensation to Developer;
(iv) own, operate, franchise or license anywhere, even in close proximity to any Bakeries developed hereunder, Bakeries of any other type whatsoever operating under marks other than the Marks; and
(v) engage in any other activity, action or undertaking that Franchisor is not expressly prohibited from taking under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, developers do not have the right to control the location of other Cinnaholic bakeries. While a developer is granted the right to establish and operate a specified number of Cinnaholic bakeries within a non-exclusive area of responsibility, this does not grant them the power to exclude, control, or impose conditions on the location or development of other Cinnaholic bakeries. These rights are not granted unless specified in a Franchise Agreement.
Cinnaholic retains the right to establish and operate, or grant to other franchisees or licensees, the right to establish and operate Cinnaholic bakeries or any other business using the Cinnaholic name and associated trademarks in any location, including within the developer's area of responsibility. This is subject to terms and conditions that Cinnaholic deems appropriate. Cinnaholic also retains the right to develop, use, and franchise the rights to any trade names, trademarks, service marks, logos, or copyrights not designated as Cinnaholic's marks for similar or different franchise systems without granting the developer any rights.
Furthermore, Cinnaholic can offer, ship, sell, and provide products or services identified by the marks to customers located anywhere through any distribution channel, including grocery stores, convenience stores, the Internet, and delivery services, both within and outside the area of responsibility, without compensating the developer. Cinnaholic can also own, operate, franchise, or license bakeries of any other type whatsoever operating under marks other than Cinnaholic's marks, even in close proximity to any bakeries developed by the developer. These stipulations underscore that the developer's rights are non-exclusive and subject to Cinnaholic's discretion in managing and expanding the brand.