factual

Does Cinnaholic refrain from operating a bakery within my franchise territory?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (c) Refrain from operating or granting a third party the right to operate a CINNAHOLIC® Bakery in the Franchise Territory (other than at non-traditional locations such as sports stadiums, arenas, universities and schools, hospitals, airports, shopping malls, and the like). (See Item 12 of this Disclosure Document and Franchise Agreement, Section 3.)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic will generally refrain from operating or granting a third party the right to operate a Cinnaholic bakery within a franchisee's territory. However, this restriction does not apply to non-traditional locations. These non-traditional locations include venues such as sports stadiums, arenas, universities and schools, hospitals, airports, shopping malls, and similar venues.

This means that while Cinnaholic typically protects a franchisee's territory from direct competition by another Cinnaholic bakery, they retain the right to establish locations in non-traditional venues within that same territory. A prospective franchisee should carefully consider the potential impact of these non-traditional locations on their business, especially if their territory includes or is near such venues.

It is important for a potential Cinnaholic franchisee to understand the specific definition of "non-traditional locations" as interpreted by Cinnaholic and how these locations might affect the potential customer base and revenue of their franchise. Further due diligence is recommended to assess the density and types of these non-traditional venues within the proposed franchise territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.