What additional expenses might a Cinnabon franchisee incur related to the Computer System?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may incur additional expenses if you require additional equipment, training, or installation services. We may require you to purchase, license, or lease additional hardware or software.
Whether you are opening a new Bakery or purchasing an existing Bakery, we may, in our sole discretion, provide you with project management assistance related to, and coordinate the onboarding and configuration of, your POS System. You must pay us for such services our thencurrent POS System Administration Fee, which is currently estimated to be between $1,500 and $2,000. We or the POS System vendor may require you to purchase, license, or lease additional hardware or software. In addition, you may incur additional expenses if you require or would like additional equipment, training, or installation services.
In addition, there may be ongoing license, maintenance, and service fees associated with the maintenance and operation of the POS System. You must maintain your POS System and keep it in good repair and procure any services necessary for the POS System to communicate with our system. We currently require you to obtain the required support and maintenance service from us or our affiliate by signing the POS System Support Services Agreement attached in Exhibit C to this Disclosure Document.
We may revise our specifications for the Computer System (including the POS System) from time to time. You are contractually required to make periodic upgrades and updates to the Computer System to remain in compliance with our Standards. If it becomes advisable at any time, in our sole discretion, for us to change, upgrade, or discontinue use of any of the components of the Computer System or the model of POS System, you will comply with our directions, at your expense, within a reasonable time after notice to you. If we require you to use a different POS System, you must stop using the old POS System, purchase the new POS System, sign any required software license agreement and any required maintenance/update agreements with the vendor, pay any related POS System Support Fees, and use the new POS System. We can require you to add, substitute or replace computer hardware, memory, ports, accessories, peripheral equipment, or software, or to replace your Computer System. There are no contractual limitations on the frequency or cost of your obligation to upgrade and replace hardware and software for your Computer System.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, franchisees may face several potential additional expenses related to the Computer System. These can arise from various factors, including the need for extra equipment, training, or installation services. The FDD specifies that Cinnabon or the POS System vendor might require franchisees to purchase, license, or lease additional hardware or software, leading to increased costs.
Furthermore, Cinnabon may provide project management assistance for the POS system's onboarding and configuration, for which they charge a POS System Administration Fee, estimated to be between $1,500 and $2,000. Franchisees are also responsible for ongoing license, maintenance, and service fees to maintain and operate the POS System, ensuring it communicates effectively with Cinnabon's system. The franchisee is obligated to obtain the required support and maintenance service from Cinnabon or its affiliate by signing the POS System Support Services Agreement.
Cinnabon retains the right to revise the Computer System specifications, mandating periodic upgrades and updates to maintain compliance with their standards. Franchisees are contractually obligated to comply with any changes, upgrades, or discontinuation of components within the Computer System, bearing the associated expenses. This includes the potential need to purchase a new POS System, sign software license and maintenance agreements, and pay related support fees. Cinnabon can also require franchisees to add, substitute, or replace computer hardware, memory, ports, accessories, peripheral equipment, or software, highlighting the potential for uncapped costs related to these upgrades and replacements.