Can Cinnaholic operate Cinnaholic franchises at destination locations like airports within a franchisee's territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iv) Own, acquire, establish and/or operate and license to others to establish and operate CINNAHOLIC® Franchises at destination locations which may be within the Territory, including but not limited to airports, stadiums, schools, and universities, hospitals, malls, shopping center food courts, or kiosks at any such facility;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic retains specific rights regarding the establishment of franchises at destination locations. Cinnaholic has the right to own, acquire, establish, and operate Cinnaholic franchises at destination locations, including but not limited to airports, stadiums, schools, universities, hospitals, malls, shopping center food courts, or kiosks, even if these locations are within a franchisee's territory.
This means that a Cinnaholic franchisee's territory is not protected from Cinnaholic itself opening or licensing additional locations within that territory if those locations are considered 'destination locations'. This could lead to direct competition for the franchisee from another Cinnaholic location.
Prospective franchisees should be aware that while they may be granted a specific territory, Cinnaholic can still establish franchises in destination locations within that territory. This is a significant factor to consider when evaluating the potential market and revenue for a Cinnaholic franchise. It is important to clarify with Cinnaholic what specific locations are considered 'destination locations' and how this might impact the franchisee's business.