Are Cinnabon franchisees required to use designated Approved Suppliers for P2PE solutions?
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 use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions. These P2PE solutions include both hardware and software components. These systems are used in conjunction with the POS system to ensure secure and compliant payment processing services.
This requirement means that franchisees do not have the freedom to choose their own P2PE vendors. Instead, they must select from a list of suppliers that Cinnabon has pre-approved. This restriction ensures that all locations meet the brand's standards for data security and compliance with payment processing regulations.
While this limits a franchisee's options, it also provides the benefit of knowing that the selected P2PE solutions have been vetted by Cinnabon. This can reduce the risk of security breaches and compliance issues. Franchisees should confirm with Cinnabon the current list of Approved Suppliers and any associated costs to factor these into their initial investment and ongoing operational expenses.