Can Cinnaholic operate a Cinnaholic Bakery within a franchisee's Franchise Territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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.
Franchise Agreement. 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. Bakeries located at sites we view as non-traditional locations (e.g. airports, malls, high-rise buildings, business, and industrial complexes) will have a Franchise Territory limited to the site of the Bakery. As long as you are in compliance with the Franchise Agreement, we will not operate a CINNAHOLIC® Bakery within your Franchise Territory (except that we reserve the right to operate or develop CINNAHOLIC® Bakeries within your Franchise Territory at non-traditional locations), and we will not authorize anyone else to do so. You will operate your Bakery only from the approved site, and you must receive our permission before you relocate your Bakery. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests.
You may solicit customers and advertise your Bakery anywhere you choose. There are no restrictions on you, any of our other franchisees, or us to prevent any soliciting or advertising in someone else's franchise territory. No party is obligated to pay compensation to any other party for soliciting customers from the other franchisee's franchise territory. 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. You may not ship products within or without your Franchise Territory. Under the Franchise Agreement, we and our affiliates have reserved the right to establish anywhere franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within your Franchise Territory) under names and symbols other than the Marks, even if these bakeries or outlets are near your Bakery. Nevertheless, as of the date of this Disclosure Document, we have no present plans to exercise any of these rights.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Cinnaholic may face competition from other franchisees, outlets that Cinnaholic owns, or from other channels of distribution or competitive brands that Cinnaholic controls. The size of a Cinnaholic Franchise Territory can range from just the approved site designated for the Bakery to an area 1.5 miles around the Bakery. If the Franchise Territory is only the approved site for the Bakery, there is no exclusivity. Cinnaholic bakeries located at non-traditional locations such as airports, malls, high-rise buildings, business, and industrial complexes will have a Franchise Territory limited to the site of the Bakery.
As long as the franchisee is in compliance with the Franchise Agreement, Cinnaholic will not operate a Cinnaholic Bakery within the franchisee's Franchise Territory. However, Cinnaholic reserves the right to operate or develop Cinnaholic Bakeries within the franchisee’s Franchise Territory at non-traditional locations. Cinnaholic also reserves the right to establish franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within the franchisee's Franchise Territory) under names and symbols other than the Marks, even if these bakeries or outlets are near the franchisee's Bakery. As of the date of the Disclosure Document, Cinnaholic has no present plans to exercise any of these rights.
Cinnaholic also reserves the right to operate, for itself and its affiliates, businesses using the Marks and other marks to distribute products or offer services (including through the Internet, worldwide web, mail order, catalogs or other forms of distribution channels or methods) that may be similar to or different from those found in Cinnaholic Bakeries, both within and outside the franchisee's Franchise Territory, so long as Cinnaholic does not do so through the operation of a Cinnaholic Bakery. Cinnaholic also reserves the exclusive right to sell products identified with the Marks both within and outside the franchisee's Franchise Territory through any distribution channels or methods (whether at retail or wholesale) including sales through catalogs, e-commerce, mail order, kiosks, mass merchandise, supermarkets and club stores, except through the operation of a Cinnaholic Bakery, even if the franchisee sells these products at their Bakery. As one example, Cinnaholic has the right to sell Cinnaholic food products through a nationwide retail chain even if the chain has facilities located within the franchisee's Franchise Territory.