factual

Can a Cinnabon franchisee purchase merchandise from a supplier not approved by Cinnabon?

Cinnabon Franchise · 2025 FDD

Answer 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. As you design and construct your Bakery, you must hire an architect that we accept in writing to prepare your plans and make any necessary changes to our standard layout and specifications. In addition, you must hire a licensed and insured general contractor that we accept to complete the build-out of your Bakery. Our acceptance of your architect or general contractor will not in any way be our endorsement of your architect or general contractor or render us liable for your architect's or general contractor's performance. When you refresh or remodel your Bakery, we may require you to obtain, at your expense, a site survey and design solution from us, our affiliates, or a designated vendor.

You must purchase and install, at your expense, all fixtures, furnishings, equipment (including a Computer System), décor and signs, as we direct. If we modify our menu, we may require you to purchase additional equipment to prepare and store new menu items. You may not install on or about your Bakery any merchandise, furnishings, interior or exterior décor items, supplies, fixtures, equipment or utensils unless they have been approved by us in writing. You must purchase these items only from an Approved Supplier unless we specify otherwise.

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 generally required to purchase specific items, referred to as "Goods," from approved suppliers. These Goods include products for resale or use in the bakery, such as proprietary ingredients, supplies, furniture, fixtures, equipment, and services. Cinnabon has the right to stipulate that these Goods meet certain specifications, be of a specific brand, kind, or model, and be purchased exclusively from approved suppliers or a designated single source, which may include Cinnabon itself or its affiliates.

However, the FDD also indicates that franchisees may purchase other goods from any source, provided that the supplier and the goods meet Cinnabon's minimum standards. Cinnabon retains the right to deem any supplier ineligible and to designate approved suppliers for any goods with written notice. If a franchisee wishes to use a non-approved supplier, they must seek approval from Cinnabon, which may involve inspections, testing, and associated costs borne by the franchisee. Approval can be granted, denied, or revoked at Cinnabon's discretion.

For trademarked product lines like t-shirts, apparel, mugs, and other merchandise bearing Cinnabon's proprietary marks, franchisees may be required to purchase these exclusively from Cinnabon, its affiliates, or designated approved suppliers. This suggests that while there may be some flexibility in sourcing certain goods, merchandise bearing Cinnabon's trademarks is likely subject to stricter sourcing requirements. A prospective franchisee should clarify with Cinnabon which specific merchandise categories allow for alternative suppliers and what standards these suppliers must meet to gain approval.

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.