factual

Can Cinnaholic use trademarks not designated as 'Marks' for other franchise systems without granting rights to the Cinnaholic developer?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor retains the right, in its sole discretion, to:

  • (ii) develop, use and franchise anywhere the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the CINNAHOLIC® System, without granting Developer any rights therein;

Source: Item 23 — RECEIPT (FDD pages 62–269)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic retains specific rights regarding trademarks and franchise systems. Cinnaholic has the right to develop, use, and franchise the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents, or copyrights not designated as 'Marks' for use with similar or different franchise systems. This can be for the sale of similar or different products or services than those already part of the Cinnaholic system. Importantly, Cinnaholic is not required to grant the developer any rights to these other trademarks or systems.

This reservation of rights means that a Cinnaholic developer or franchisee does not have any claim to trademarks or systems that Cinnaholic uses for other ventures, even if those ventures are related to the food industry. This clause protects Cinnaholic's ability to diversify and expand into new areas without having to share those opportunities or branding elements with existing developers.

For a prospective Cinnaholic franchisee, this highlights the importance of understanding the scope of rights granted specifically within their Franchise Agreement. While they gain the right to operate a Cinnaholic Bakery using the designated 'Marks' and system, they do not gain any broader rights to other intellectual property or business systems that Cinnaholic may develop or franchise separately. This is a fairly standard practice in franchising, where the franchisor retains control over its intellectual property and future business ventures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.