What rights are retained by Cinnaholic that are not specifically granted to the franchisee under the Franchise Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Any rights that are not specifically granted to you under the Franchise Agreement are retained by us.
Under the Franchise Agreement, we and our affiliates have reserved the right to establish anywhere franchises and/or company-owned or affiliate-owned bakeries or outlets selling similar products and providing similar services (including within your Franchise Territory) under names and symbols other than the Marks, even if these bakeries or outlets are near your Bakery.
We also reserve the right to operate, for ourselves and our affiliates, businesses using the Marks and other marksto distribute products or offer services (including through the Internet, worldwide web, mail order, catalogs or other forms of distribution channels or methods) that may be similar to or different from those found in CINNAHOLIC® Bakeries, both within and outside your Franchise Territory, so long as we do not do so through the operation of a CINNAHOLIC® Bakery.
We also reserve the exclusive right to sell products identified with the Marks both within and outside your Franchise Territory through any distribution channels or methods (whether at retail or wholesale) including sales through catalogs, e-commerce, mail order, kiosks, mass merchandise, supermarkets and club stores, except through the operation of a CINNAHOLIC® Bakery, even if you sell these products at your Bakery.
You have no right to use the Marks in connection with any business other than a CINNAHOLIC® Bakery.
Source: Item 12 — TERRITORY (FDD pages 36–37)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, any rights not explicitly granted to the franchisee in the Franchise Agreement are retained by Cinnaholic. This means Cinnaholic maintains control over aspects of the business that aren't specifically outlined as the franchisee's responsibility or right. Cinnaholic has the right to engage in any other activities not expressly prohibited in the Franchise Agreement.
Specifically, Cinnaholic retains the right to establish franchises and/or company-owned bakeries or outlets selling similar products and providing similar services under different names and symbols, even within a franchisee's territory. Cinnaholic also reserves the right to operate businesses using the Cinnaholic marks to distribute products or offer services through various channels like the Internet, mail order, or catalogs, both within and outside the franchisee's territory, as long as it's not through a Cinnaholic Bakery. Furthermore, Cinnaholic retains the exclusive right to sell products identified with the Cinnaholic marks through any distribution channels, including retail, wholesale, e-commerce, and supermarkets, except through the operation of a Cinnaholic Bakery.
For a prospective franchisee, this means that while you have the right to operate a Cinnaholic Bakery within your designated territory, Cinnaholic can still engage in activities that might compete with your business. For example, Cinnaholic could sell its products through a nationwide retail chain, even if that chain has locations within your territory. Additionally, franchisees are restricted to selling products only from their bakery location and cannot sell products online or through other distribution channels. These retained rights allow Cinnaholic to diversify its revenue streams and expand its brand presence beyond individual franchise locations, but it also introduces a level of competition and limits the franchisee's control over the brand within their territory.