If a Cinnaholic Franchise Territory is designated as being the approved site for the Bakery, will it have any exclusivity?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You will receive the right to operate a CINNAHOLIC® Bakery only at a site we approve, in our sole discretion. The site will be designated in the Franchise Agreement. Your Franchise Territory will be negotiated by you and us before you sign the Franchise Agreement and specifically described in the Franchise Agreement. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. In negotiating the Franchise Territory, we may examine population, traffic flow, presence of businesses, location of competitors (including other CINNAHOLIC® franchisees), demographic, and other market conditions. There is no minimum Franchise Territory and the size of the Franchise Territory will range from being the approved site designated for your Bakery to an area 1.5 miles around the Bakery. A Franchise Territory that is designated as being the approved site for the Bakery will not have any exclusivity.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a Franchise Territory designated as the approved site for a Cinnaholic Bakery will not have any exclusivity. This means that even if a franchisee's territory is limited to the physical location of their bakery, Cinnaholic does not guarantee exclusive rights within that territory.
Cinnaholic retains the right to establish franchises and/or company-owned bakeries selling similar products and services, even within a franchisee's territory, under different names and symbols. Cinnaholic also reserves the right to distribute products or offer services similar to those found in Cinnaholic Bakeries through various channels, including the internet, mail order, and retail chains, both within and outside a franchisee's territory, as long as it is not through the operation of another Cinnaholic Bakery.
This lack of exclusivity means that Cinnaholic franchisees may face competition from other franchisees, company-owned outlets, and other distribution channels controlled by Cinnaholic, even within their designated territory. Prospective franchisees should carefully consider this factor and evaluate the potential for competition in their chosen location before investing in a Cinnaholic franchise. It is important to note that while Cinnaholic will not operate another Cinnaholic Bakery within a franchisee's territory (except at non-traditional locations) as long as the franchisee is in compliance with the Franchise Agreement, the absence of an exclusive territory introduces a level of risk that prospective franchisees should fully understand.