Can Cinnaholic grant other franchisees the right to operate a Cinnaholic Bakery outside of a franchisee's territory?

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

This means that while a franchisee is granted a specific territory, Cinnaholic is not restricted from opening its own stores or allowing other franchisees to open Cinnaholic bakeries outside of that territory. This clause protects Cinnaholic's ability to expand its brand presence and market reach without being limited by existing franchise agreements.

For a prospective franchisee, this implies that the protected territory is limited. Cinnaholic retains considerable freedom to develop its brand elsewhere, which could potentially impact the franchisee's business if other Cinnaholic locations open nearby, even if outside the franchisee's territory. It is important for potential franchisees to understand the scope and limitations of their territorial protection when considering a Cinnaholic franchise.