factual

From whom must Cinnabon franchisees purchase merchandise, furnishings, and equipment?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

oved 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.

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.

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 or lease furniture, fixtures, equipment, and other products either from Cinnabon, its affiliates, or from designated or approved suppliers. Cinnabon has the right to require that these goods meet certain specifications, be of a specific brand, kind, or model, or be part of a purchasing program.

Specifically, franchisees must purchase all proprietary ingredients, proprietary products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging from Cinnabon, its affiliates, or designated approved suppliers. These proprietary goods include printed paper, paper products, and plastic products bearing Cinnabon's proprietary marks. Franchisees may also be required to purchase trademarked product lines consisting of t-shirts, apparel, mugs, and other merchandise bearing the proprietary marks from these same sources.

For the physical bakery location, franchisees must purchase and install all fixtures, furnishings, equipment (including a computer system), décor, and signs as directed by Cinnabon. These items must be purchased from an approved supplier unless Cinnabon specifies otherwise. The computer system and related software, including the POS system and point-to-point encryption solutions, must be obtained from approved suppliers. Cinnabon may also require franchisees to use designated approved suppliers for internet service providers or other communications providers.

Currently, Cinnabon estimates that purchases from approved suppliers and under their standards will be about 85% of the total purchases and leases needed to establish the bakery and about 90% of the total purchases and leases needed to operate the bakery. While franchisees may purchase the remainder of the goods from any source as long as they meet Cinnabon's minimum standards, Cinnabon reserves the right to designate any supplier as ineligible or to designate one or more approved suppliers for any goods with written notice.

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.