Are Cinnabon franchisees required to purchase most components of the Computer System from Approved Suppliers?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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.
We require you to accept major credit cards (Visa, MasterCard, American Express, and Discover) and other major payment methods (such as Apple Pay and Google Pay) for customer purchases, participate in our Gift Card and Loyalty Programs, and participate in our in-shop mobile and online ordering program. These programs may require that you invest in additional equipment and incur fees from the credit card processing vendors, gift card processing vendors, and other hardware and software vendors that we designate.
We require you to purchase and maintain specific types of insurance coverage as described in more detail in the Franchise Agreement and the Manuals from insurance companies that meet
our minimum Standards. We also specify the minimum amounts of insurance coverage you must maintain. All insurance policies must name us and others we designate as additional insureds.
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 most components of their Computer System from Approved Suppliers. This includes the POS system, certain software like the Learning Management System, and point-to-point encryption (P2PE) solutions used with the POS system for secure payment processing. Cinnabon may also require franchisees to use specific Internet Service Providers or other communication providers. Currently, franchisees must obtain their POS system from Cinnabon's designated vendor, and Cinnabon may collect and remit the related fees on the franchisee's behalf. Franchisees may also be required to maintain support service contracts from Cinnabon, its affiliates, or designated Approved Suppliers.
This requirement extends to accepting major credit cards and participating in Cinnabon's Gift Card and Loyalty Programs, as well as the in-shop mobile and online ordering program. These programs may necessitate additional equipment investments and fees from designated vendors. The FDD specifies that franchisees must purchase and install all fixtures, furnishings, equipment (including the Computer System), décor, and signs as directed by Cinnabon, and these items must be purchased from Approved Suppliers unless otherwise specified.
For a prospective Cinnabon franchisee, this means they have limited choice in selecting their computer systems and related components, as most must be sourced from Cinnabon-approved vendors. This ensures brand consistency and potentially better integration with Cinnabon's systems, but it also means franchisees may not be able to shop around for the best prices or preferred vendors. It is important to note that Cinnabon retains the right to add or change Approved Suppliers at any time, giving them control over where franchisees can source these essential items. Franchisees should inquire about the costs associated with these required systems and vendor relationships to fully understand the financial implications.