Is the right to operate a Cinnaholic bakery under the CINNAHOLIC® name exclusive or non-exclusive?

According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are granted a non-exclusive right to operate their bakery under the CINNAHOLIC® name. This means that Cinnaholic retains the right to license the CINNAHOLIC® trademark to other franchisees or operate Cinnaholic businesses themselves, even within the same general market area as an existing franchisee.

The Franchise Agreement specifies that franchisees can only use the CINNAHOLIC® mark to identify their bakery and cannot use it as part of any corporate or trade name, domain name, or electronic address unless expressly authorized in writing by Cinnaholic. Franchisees are also prohibited from using the mark in connection with unauthorized products or services. All goodwill associated with the use of the mark benefits Cinnaholic, and franchisees only have a license to use the mark during the term of the Franchise Agreement.

Franchisees must immediately notify Cinnaholic of any infringement or challenges to the use of the mark. Cinnaholic has the exclusive right to control any litigation or proceedings related to infringement or claims. While Cinnaholic will defend franchisees against third-party claims arising from their use of the mark in accordance with the Franchise Agreement, franchisees may bear the costs if they misuse the mark. Cinnaholic may also require franchisees to modify or discontinue the use of a mark, with the franchisee responsible for tangible compliance costs like changing signs.

Overall, the non-exclusive nature of the trademark license means that Cinnaholic franchisees do not have a protected territory based on the trademark itself. Prospective franchisees should carefully consider the potential for competition from other Cinnaholic locations or channels when evaluating the franchise opportunity.