Does Cinnabon have Approved Suppliers for certain software that franchisees must use?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Bakery, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
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, franchisees are required to purchase certain software from Approved Suppliers. Specifically, Cinnabon has Approved Suppliers for the POS (Point of Sale) system and for certain other software used in the bakery, including the Learning Management System. Additionally, franchisees must use designated Approved Suppliers for point-to-point encryption (P2PE) solutions, which include both hardware and software, to ensure secure payment processing with the POS system.
Cinnabon may also require franchisees to use proprietary software or purchase software from a designated vendor, in which case franchisees must execute any necessary software license and maintenance agreements. The brand may also mandate specific network connections, potentially requiring franchisees to use an approved or designated Internet Service Provider. Currently, Cinnabon requires franchisees to obtain the POS System from a designated vendor and related support services from an affiliate, with Cinnabon potentially collecting and remitting the associated fees on the franchisee's behalf.
This requirement to use Approved Suppliers for software and systems ensures brand consistency and compliance across all Cinnabon locations. However, it also means that franchisees have limited choice in selecting these critical business tools and must adhere to Cinnabon's approved vendors. Prospective franchisees should inquire about the costs associated with these required software systems and support services to fully understand the financial implications.