Which sections of the Cinnaholic Franchise Agreement address the franchisee's obligation regarding restrictions on products or services offered?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL]
You must conduct the business operated at your Bakery as required by the Operations Manual and the Franchise Agreement. You must offer and sell only those products and services approved by us. Further, you must offer all goods and services that we designate as required for all franchisees. These required goods and services include custom gourmet cinnamon rolls and baked goods, and other food products and beverages. We have the right to add additional authorized goods and services that you must offer. This means that we have the right to require you to carry the required menu items that we dictate and that we determine are appropriate for CINNAHOLIC® Bakeries. There are no limits on our right to make modifications to our approved menu, whether by a change in the Operations Manual or through an amendment to the Franchise Agreement or by another form of written directive.
We will not restrict you from soliciting any customers, no matter who they are or where they are located. However, you may only sell products to consumers for consumer purposes (and not for resale). You may not sell products at wholesale. In addition, you may provide delivery and catering services from the Bakery within or without your Franchise Territory in connection with providing these delivery and catering services within a reasonable distance from the site of the Bakery not to exceed 10 miles, provided the deliveries are made by ground transportation. Subject to this maximum mileage requirement, you may provide catering and delivery services in the Franchise Territories of other CINNAHOLIC® franchisees, and other CINNAHOLIC® franchisees may provide the same services in your Franchise Territory. You may not ship products within or without your Franchise Territory.
You may not have or use, or permit the presence or use of, video game machines or vending machines or any similar device or machine at the Bakery unless we consent in writing.
9. OBLIGATIONS OF FRANCHISEE
Franchisee recognizes the mutual benefit to Franchisee, Franchisor and other franchisees of the CINNAHOLIC® System of the uniformity of the appearance, services, products and advertising of the CINNAHOLIC® System and acknowledges and agrees that such uniformities are necessary for the successful operation of CINNAHOLIC® Bakeries. Franchisee also acknowledges and agrees that products and services sold under the Marks and at CINNAHOLIC® Bakeries have a reputation for excellence. This reputation has been developed and maintained by Franchisor, and Franchisee acknowledges and agrees that it is of the utmost importance to Franchisor, Franchisee, and all other franchisees of the CINNAHOLIC® System that such reputation be maintained. To this end, Franchisee covenants and warrants with respect to the operation of the Bakery that Franchisee and its employees and agents will comply with all of the requirements of the CINNAHOLIC® System and the Operations Manual and will throughout the term of this Agreement:
- (i) Operate the Bakery and prepare and sell all products and services sold therein in accordance with the specifications, standards, business practices and policies of Franchisor now in effect or hereafter promulgated, and comply with all requirements of Franchisor, the CINNAHOLIC® System and the Operations Manual as they are now or hereafter established, including, without limitation, any health, sanitation and cleanliness standards and specifications.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 26–27)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Item 16, titled "Restrictions On What The Franchisee May Sell," and section 9 of Item 22, titled "Obligations of Franchisee," outline the franchisee's obligations regarding restrictions on products or services offered. Item 16 specifies that franchisees must operate their bakery according to the Operations Manual and Franchise Agreement, offering only approved products and services, including required items like custom gourmet cinnamon rolls, baked goods, and other food and beverages. Cinnaholic retains the right to add or modify the approved menu.
Item 16 also states that while franchisees can solicit customers anywhere, they can only sell products for consumer purposes and not for resale or wholesale. Delivery and catering services are allowed within a 10-mile radius of the bakery via ground transportation, even into other franchisees' territories. However, shipping products outside the territory is prohibited. Franchisees also need written consent from Cinnaholic to have video game or vending machines at the bakery.
Item 22, Section 9 emphasizes the importance of uniformity in appearance, services, products, and advertising within the Cinnaholic system. Franchisees must operate the bakery and sell products and services according to Cinnaholic's standards, business practices, and policies, as detailed in the Operations Manual. This includes adhering to health, sanitation, and cleanliness standards. These sections of the Franchise Agreement ensure that franchisees maintain the quality and consistency of the Cinnaholic brand.