Does Cinnaholic reserve rights regarding delivery services?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor retains the right, in its sole discretion, to:
- (iii) Offer, ship, sell and provide products or services identified by the Marks or other trademarks, service marks, commercial symbols or emblems to customers located in the Franchise Territory through any distribution channel or method, including grocery stores, convenience stores, Internet (or any other existing or future form of electronic commerce), and delivery services, irrespective of the proximity to the Bakery without compensation to Franchisee; provided, however, that any such sales will not be made from a CINNAHOLIC® Bakery located in the Franchise Territory;
Catering and Delivery Services.
Franchisor acknowledges and agrees that Franchisee may provide catering and delivery services within a reasonable distance from the Franchised Site not to exceed 10 miles, within or without the Franchise Territory, but solely in connection with providing such catering and delivery services and provided such services are made by ground transportation.
Subject to the foregoing maximum mileage restriction, Franchisee may provide catering and delivery services in the exclusive territories of other CINNAHOLIC® franchisees, and other CINNAHOLIC® franchisees may provide the same services in the Franchise Territory.
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 delivery services and other distribution channels. Cinnaholic reserves the right to offer, ship, sell, and provide products or services identified by their trademarks to customers within the franchisee's territory through various distribution channels. These channels include grocery stores, convenience stores, the Internet, electronic commerce, and delivery services. This reservation applies regardless of the proximity to the franchisee's bakery.
However, such sales cannot be made from a Cinnaholic bakery located within the franchisee's territory. This means Cinnaholic can engage in direct sales and deliveries to customers in a franchisee's territory through channels other than the franchisee's physical store.
The franchisee, on the other hand, is allowed to provide catering and delivery services within a reasonable distance, not exceeding 10 miles from the franchised site. This service can extend within or outside the Franchise Territory, provided it involves ground transportation. Franchisees may also provide catering and delivery services in other Cinnaholic franchisees' exclusive territories, and vice versa, subject to the mileage restriction. This creates a potentially competitive but also collaborative environment among franchisees regarding catering and delivery services.