How is the number of Cinnaholic Bakeries to be developed determined?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must enter into a Market Development Agreement, the current form of which is attached to this Disclosure Document as Exhibit B (the "Development Agreement"). Under the Development Agreement, you must develop, open and operate an agreed upon number of Bakeries located in an area of responsibility (the "Area of Responsibility") in accordance with an agreed upon development schedule (the "Development Schedule"). You must enter into a Development Agreement even if you will establish only one Bakery. There is no preset minimum or maximum number of Bakeries that you may agree to establish in connection with a Development Agreement. The number of Bakeries to be developed is negotiated between you and us on a case-by-case basis. The Development Agreement will expire on the day after operations of the final Bakery to be established under the Development Agreement are required to begin as provided on the Development Schedule. The Development Agreement will not grant any protected territory, exclusivity or other rights in which to establish your Bakeries in the Area of Responsibility. You may establish your Bakeries at any location within the Area of Responsibility provided we consent to the location, which may be withheld or granted in our sole discretion, the location is in a state where we are permitted to sell CINNAHOLIC® franchises, and the Bakery is not located in the franchise territory granted to another CINNAHOLIC® franchisee. Within our sole discretion, we may consider a location proposed by you outside your Area of Responsibility.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the number of bakeries a franchisee is expected to develop is determined through negotiation between the franchisee and Cinnaholic. This number is documented in a Market Development Agreement. There isn't a pre-set minimum or maximum number of bakeries that a franchisee can agree to establish.
This agreement also includes an Area of Responsibility and a Development Schedule, outlining the territory where the bakeries will be located and the timeline for opening them. It's important to note that the Development Agreement does not grant any protected territory or exclusivity for establishing the bakeries. The franchisee can propose locations within their Area of Responsibility, but Cinnaholic must approve these locations, and approval can be withheld at Cinnaholic's discretion. The location must also be in a state where Cinnaholic is permitted to sell franchises and not within another franchisee's territory.
Even if a franchisee intends to open only one Cinnaholic bakery, they must still enter into a Development Agreement. This agreement expires once the final bakery's operations are required to begin, as specified in the Development Schedule. Cinnaholic may consider locations outside the franchisee's Area of Responsibility at its sole discretion.
Each Cinnaholic bakery operated under the Development Agreement requires a separate Franchise Agreement. Upon opening additional locations, the franchisee might need to sign the then-current Franchise Agreement, which could differ from the one included in the FDD. This subsequent Franchise Agreement will grant a protected territory, the size and scope of which will be determined on a case-by-case basis.