What is the purpose of P2PE solutions that Cinnabon franchisees are required to use?
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 point-to-point encryption (P2PE) solutions in conjunction with their POS systems. These P2PE solutions, encompassing both hardware and software, are mandated to ensure secure and compliant payment processing services at each Cinnabon bakery.
This requirement means that Cinnabon franchisees must purchase these P2PE systems from designated Approved Suppliers. This is to ensure that the payment processing meets specific security standards set by Cinnabon. By mandating the use of P2PE solutions, Cinnabon aims to protect customer payment information and maintain compliance with industry regulations, reducing the risk of data breaches and fraud.
For a prospective franchisee, this translates into an additional cost and operational requirement. Franchisees must factor in the expense of purchasing and maintaining these systems. They must also adhere to Cinnabon's approved supplier list for these technologies. While this adds to the initial investment, it also provides a level of security and compliance that can protect the business and its customers.