Can Cinnabon require franchisees to purchase goods as part of a purchasing program?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ees for any of these items. The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.
ITEM 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases. We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, "Goods") that you purchase for resale or purchase or lease for use in your Bakery: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from Approved 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.
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, Cinnabon has the right to require franchisees to purchase goods as part of a purchasing program, arrangement, or contract that they negotiate or specify. These goods include Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services. Cinnabon may add or change Approved Suppliers at any time.
Cinnabon also states that franchisees must purchase all requirements of Proprietary Ingredients, Proprietary Products, and 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. Cinnabon may also require franchisees to purchase certain trademarked product lines consisting of t-shirts, apparel, mugs, and other merchandise and products bearing the Proprietary Marks from Cinnabon, its affiliates, or its designated Approved Suppliers.
Currently, Cinnabon estimates that purchases from Approved Suppliers and otherwise under their Standards will be about 85% of the total purchases and lease of products and services needed to establish the Bakery and about 90% of the total purchases and leases of products and services needed to operate a Bakery. Cinnabon has the right to form Purchasing Programs at any time. If Cinnabon does form a Purchasing Program, franchisees must become a member by the deadlines specified, remain a member in good standing of the Purchasing Program throughout the term of the Franchise Agreement, and pay all reasonable membership fees assessed by any Purchasing Programs.