Can Cinnaholic operate acquired businesses as Cinnaholic Bakeries under the Marks?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees and affirms that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities as CINNAHOLIC® Bakeries operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of these facilities, which Franchisee acknowledges may be proximate to any of its Bakeries.
With regard to any of the above sales, assignments and dispositions, Franchisee expressly and specifically waives any claims, demands or damages arising from or related to the loss of Franchisor's name, the Marks (or any variation thereof) and the CINNAHOLIC® System and/or the loss of association with or identification of CINNAHOLIC FRANCHISING, LLC, under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to purchase, merge, acquire, or affiliate with existing competitive or noncompetitive franchise networks, chains, or any other business. Following such an event, Cinnaholic can operate, franchise, or license those businesses and/or facilities as Cinnaholic Bakeries under the Marks, regardless of the location of these facilities. This includes the possibility of these acquired facilities being near existing Cinnaholic Bakeries.
This clause gives Cinnaholic significant flexibility in expanding its brand presence through acquisitions. For a franchisee, this means that Cinnaholic could potentially establish company-owned or franchised locations nearby, even if they were previously part of another chain.
However, the franchisee expressly waives any claims, demands, or damages arising from or related to the loss of Cinnaholic's name, the Marks, the Cinnaholic System, or the loss of association with Cinnaholic Franchising, LLC, due to these acquisitions. This waiver is a critical point for prospective franchisees to consider, as it limits their recourse if Cinnaholic's expansion strategy impacts their business.