Can Cinnabon or its affiliates be designated as the single source for franchisees to purchase or lease Goods?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ees for any of these items. The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.
ITEM 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases. We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, "Goods") that you purchase for resale or purchase or lease for use in your Bakery: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from Approved Suppliers; (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates); and/or (v) be purchased as part of a purchasing program, arrangement, or contract that we negotiate or specify. We may add or change Approved Suppliers at any time.
You must purchase all of your requirements of Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging (collectively, the "Proprietary Goods") from us, our affiliates, or our designated Approved Suppliers. The Proprietary Goods include printed paper, paper products, and plastic products bearing our Proprietary Marks (including, for example, dishes, containers,
cartons, bags, napkins, and packaging supplies). We may require you to purchase certain trademarked product lines consisting of t-shirts, apparel, mugs, and other merchandise and products bearing the Proprietary Marks ("Trademarked Product Lines") from us, our affiliates, or our designated Approved Suppliers. In addition, if we conduct test marketing to determine consumer trends and the salability of new food or non-food products and services, you may be required to purchase a reasonable quantity of test products we specify from designated Approved Suppliers.
For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics and competitors within the market.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–63)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon retains the right to designate itself or its affiliates as the sole source from which franchisees must purchase or lease goods. These goods encompass a wide array of items, including approved products, other products, proprietary ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services required for the bakery's operation or resale. This stipulation allows Cinnabon to maintain quality control and standardization across all franchise locations.
For a prospective Cinnabon franchisee, this means that Cinnabon can mandate that certain items be purchased or leased exclusively from Cinnabon, its affiliates, or a designated single source. This could impact the franchisee's costs and sourcing options. While franchisees might benefit from negotiated pricing or quality assurance, they also relinquish the ability to shop around for potentially better deals or preferred suppliers.
Currently, Cinnabon or its affiliates are not Approved Suppliers for any Goods that franchisees are required to purchase or lease, except when operating an SRU (small retail unit). If a franchisee qualifies to operate an SRU, they will be required to lease or purchase the cart or kiosk from Cinnabon, its affiliate, or a third party to participate in the SRU Program. However, Cinnabon and its affiliates reserve the right to become an Approved Supplier or the only Approved Supplier for any Goods in the future, which could change the purchasing landscape for franchisees.
It is important for prospective franchisees to understand that Cinnabon estimates that purchases from Approved Suppliers and under their standards will constitute approximately 85% of the total purchases and leases needed to establish a Bakery and about 90% of the total purchases and leases needed to operate a Bakery. This highlights the significant control Cinnabon exerts over the supply chain and the importance of understanding the terms and conditions associated with approved suppliers.