Can the rights granted to the Franchisee for the Cinnaholic Franchised Site be transferred to another location?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
holders, managers, members, partners, employees and agents; and (ix) Franchisee provides Franchisor with evidence that Franchisee has the right to remain in possession of the Franchised Site or to secure and develop a suitable alternative site acceptable to Franchisee for the renewal term.
3. FRANCHISED SITE AND TERRITORY
- 3.1. Franchised Site. The rights granted to Franchisee hereunder shall be non-exclusive and shall be restricted to the operation of a single CINNAHOLIC® Bakery to be located at the address and location set forth on Exhibit A attached hereto (the "Franchised Site"). During the term of this Agreement, the Franchised Site shall be used exclusively to operate a Bakery. In connection with the execution of any lease or sublease for the Franchised Site, Franchisee must execute, and cause the lessor and/or sublessor of the Franchised Site to execute, the Collateral Assignment of Lease attached to the Market Development Agreement entered into between Franchisor and Franchisee (the "Development Agreement"), in addition to complying with any other obligations and conditions contained in the Development Agreement relating to the lease or sublease of the Franchised Site and the development and construction of the Bakery. The rights granted to Franchisee are for the specific Franchised Site and cannot be transferred to any other location, except with Franchisor's prior w
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the rights granted to a franchisee are specific to the approved Franchised Site and generally cannot be transferred to another location without prior written approval from Cinnaholic. Specifically, the franchise agreement states that the rights are restricted to the operation of a single Cinnaholic bakery at the address specified in Exhibit A of the agreement.
This restriction means that a franchisee cannot unilaterally decide to move their Cinnaholic bakery to a different location. To do so, they would need to seek and obtain Cinnaholic's written consent. This provision allows Cinnaholic to maintain control over brand consistency and site selection, ensuring that each location meets their standards and market considerations.
For a prospective Cinnaholic franchisee, this clause underscores the importance of carefully evaluating the initial Franchised Site. While relocation might be possible with Cinnaholic's approval, it is not guaranteed. Franchisees should discuss site selection criteria and potential future flexibility with Cinnaholic during their due diligence to fully understand the implications of this restriction.