Can Cinnabon or its affiliates require a franchisee to purchase project management assistance related to the Computer System from an approved supplier?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates may, in our sole discretion, provide you with, or require you to purchase from an Approved Supplier, (i) project management assistance related to, and coordinate the onboarding and configuration of, your Computer System before your Franchised Business opens or, if you are acquiring an existing Franchised Business, when you assume control of such Franchised Business; (ii) back office and polling services; (iii) required modifications and enhancements to the Computer System; and/or (iv) other maintenance and
support programs. We may require you to enter into agreements with, and pay a reasonable fee to, us, our affiliates, or Approved Suppliers for such services. The fees for such services may be increased in any calendar year by no more than the Allowed Adjustment. Any fees that we or our affiliates charge for modifications and enhancements to the Computer System and fees for thirdparty hardware or software will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon or its affiliates have the right to require franchisees to purchase project management assistance related to the Computer System from an approved supplier. Specifically, this assistance involves the onboarding and configuration of the Computer System before the Cinnabon franchise opens, or when a franchisee acquires an existing franchise.
Cinnabon may also require franchisees to purchase other computer services from approved suppliers, including back office and polling services, required modifications and enhancements to the Computer System, and other maintenance and support programs. Franchisees may be required to enter into agreements with Cinnabon, its affiliates, or approved suppliers for these services and pay reasonable fees.
The fees for these services may be increased each calendar year, but the increase cannot exceed the Allowed Adjustment. For modifications and enhancements to the Computer System, as well as fees for third-party hardware or software, the fees charged by Cinnabon or its affiliates will not exceed 110% of their actual costs and expenses related to these products or services. This ensures that franchisees are not excessively overcharged for these essential services.