Does Cinnaholic require a certain level of sales for a franchisee to maintain their Franchise Territory?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We have not established any minimum sales quota and do not require any certain level of sales, revenue volume or market penetration in order for you to maintain your Franchise Territory. We will not reduce the size of your Franchise Territory even if the population in it increases. Likewise, we will not expand the size of your Franchise Territory if the population in it decreases. We cannot alter your Franchise Territory unless you give us your written consent. Any rights that are not specifically granted to you under the Franchise Agreement are retained by us.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic does not require a specific level of sales, revenue, volume, or market penetration for a franchisee to maintain their franchise territory. The size of the territory will also not be reduced if the population increases, nor will it be expanded if the population decreases. The territory can only be altered with the franchisee's written consent. This provides a level of security for the franchisee, as their territory is not subject to change based on performance metrics or demographic shifts.
This policy is beneficial for franchisees as it removes the pressure of meeting specific sales targets to retain their territory. It allows them to focus on building their business without the risk of losing their territory due to factors outside of their direct control. However, it's important to note that while the territory size is protected, Cinnaholic retains the right to engage in other activities and establish other outlets, including those owned by the company or its affiliates, that may compete with the franchisee's bakery.
While Cinnaholic does not impose minimum sales quotas to maintain the territory, franchisees should still focus on achieving strong sales performance to ensure the overall success and profitability of their business. The absence of a sales quota does not guarantee success, and franchisees must actively manage and market their bakery to attract and retain customers. Additionally, franchisees should be aware that Cinnaholic reserves the right to sell products through other channels, such as retail chains, even within the franchisee's territory, which could impact their sales.