Is there a preset minimum or maximum number of Cinnaholic Bakeries that you may agree to establish in connection with a Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Development Agreement, you must develop, open and operate an agreed upon number of Bakeries located in an area of responsibility (the "Area of Responsibility") in accordance with an agreed upon development schedule (the "Development Schedule"). You must enter into a Development Agreement even if you will establish only one Bakery. There is no preset minimum or maximum number of Bakeries that you may agree to establish in connection with a Development Agreement. The number of Bakeries to be developed is negotiated between you and us on a case-by-case basis. The Development Agreement will expire on the day after operations of the final Bakery to be established under the Development Agreement are required to begin as provided on the Development Schedule. The Development Agreement will not grant any protected territory, exclusivity or other rights in which to establish your Bakeries in the Area of Responsibility. You may establish your Bakeries at any location within the Area of Responsibility provided we consent to the location, which may be withheld or granted in our sole discretion, the location is in a state where we are permitted to sell CINNAHOLIC® franchises, and the Bakery is not located in the franchise territory granted to another CINNAHOLIC® franchisee. Within our sole discretion, we may consider a location proposed by you outside your Area of Responsibility.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, there is no preset minimum or maximum number of bakeries that a franchisee may agree to establish under a Development Agreement. The number of Cinnaholic Bakeries to be developed is determined through negotiations between the franchisee and Cinnaholic Franchising, LLC on a case-by-case basis.
This means that prospective franchisees have the opportunity to discuss and agree upon a development schedule that aligns with their investment capacity and business goals. This flexibility can be advantageous for franchisees who may want to start with a smaller commitment and gradually expand their operations. However, it also means that the final number of bakeries to be developed will depend on the outcome of negotiations with Cinnaholic.
It's important to note that even if a franchisee intends to open only one Cinnaholic Bakery, they are still required to enter into a Development Agreement. The Development Agreement outlines the area of responsibility and the development schedule for establishing the bakeries. The agreement expires after the final bakery's operations are required to begin, as specified in the development schedule. The Development Agreement does not grant any protected territory, exclusivity, or other rights to establish Cinnaholic Bakeries in the Area of Responsibility.
Cinnaholic franchisees can establish their Bakeries at any location within their Area of Responsibility, provided that Cinnaholic consents to the location. Cinnaholic may withhold or grant consent at their sole discretion. The location must also be in a state where Cinnaholic is permitted to sell franchises and not be located in another franchisee's territory. Cinnaholic may also consider locations outside the Area of Responsibility at their sole discretion.