What are 'Proprietary Goods' that Cinnabon franchisees are required to purchase from specific sources?

According to Cinnabon's 2025 Franchise Disclosure Document, franchisees must purchase specific items, referred to as "Proprietary Goods," from Cinnabon, its affiliates, or designated approved suppliers. These Proprietary Goods include proprietary ingredients, proprietary products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging.

This requirement ensures that Cinnabon maintains consistency and quality across all franchise locations. By mandating the use of specific suppliers for these goods, Cinnabon can control the standards of products used and sold, which directly impacts the brand's reputation and customer experience.

For a prospective franchisee, this means they will not have the freedom to source these items independently. They must factor in the cost and availability of these goods from the approved sources when assessing the financial viability of the franchise. Any deviation from this requirement could result in a breach of the franchise agreement.

It is also important to note that Cinnabon and its affiliates may derive revenue from these purchases made by franchisees, including through promotional allowances, volume discounts, and other payments from manufacturers or suppliers. This is a common practice in franchising, where the franchisor benefits from the collective purchasing power of its franchisees.