What is the maximum distance a Cinnaholic franchisee can deliver catering services from their Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you may deliver products from the Bakery within or without your Franchise Territory in connection with providing catering services within a reasonable distance from your Bakery, but not more than 10 miles, provided the deliveries are made by ground transportation.
Subject to this maximum mileage requirement, you may provide catering and delivery services in another franchisee's franchise territory without compensating the other franchisee, and other CINNAHOLIC® franchisees may provide the same services in your Franchise Territory without compensating you.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee may deliver products for catering services within or outside their designated franchise territory. However, this delivery range is capped at a maximum of 10 miles from the Cinnaholic Bakery, and all deliveries must be made via ground transportation. This 10-mile limit applies regardless of whether the catering service extends into another franchisee's territory.
This arrangement means that a Cinnaholic franchisee can potentially serve customers beyond their immediate territory through catering, which could increase revenue. However, the 10-mile restriction limits the reach of the catering services. Other Cinnaholic franchisees can also cater within the same 10-mile radius of your bakery, creating potential competition for catering clients.
It's important to note that this catering arrangement does not require any compensation to be paid between franchisees, even if one is catering in another's territory. This could lead to both cooperation and competition among franchisees. The franchisee is responsible for ensuring that all catering deliveries comply with the ground transportation requirement.