During test marketing for Cinnabon, what are franchisees required to provide to the franchisor?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.6 Test Marketing. We may from time to time conduct test marketing to determine consumer trends and the salability of new food or non-food products and services. You will participate in any test marketing we require by providing us with timely reports and other relevant information as we may request. In connection with test marketing, you will purchase for the Franchised Business the reasonable quantity of test products we specify and will use your best efforts to promote and sell test products.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are required to participate in test marketing as requested by Cinnabon. This participation involves providing timely reports and other relevant information that Cinnabon may request to determine consumer trends and the salability of new food or non-food products and services. Franchisees are also required to purchase a reasonable quantity of test products for the Franchised Business as specified by Cinnabon and use their best efforts to promote and sell these test products.
This requirement means that franchisees must be prepared to adapt their operations to accommodate test marketing initiatives. This could involve training staff on new products, adjusting marketing strategies, and closely monitoring sales data to provide accurate reports to Cinnabon. The cost of purchasing test products is borne by the franchisee, which could impact their profitability during the test period.
While franchisees are obligated to participate in test marketing, Cinnabon also disclaims all implied warranties of merchantability and fitness for a particular purpose with respect to all goods that they offer, sell, or require for the franchised business. The franchisee's exclusive remedy and Cinnabon's exclusive liability for all claims related to any sourced products is limited to the purchase price of such sourced products, plus shipping costs, if any, or at their option, the replacement of such sourced products. This disclaimer does not affect any claims franchisees may have against third-party manufacturers or Suppliers of any Sourced Products.
Overall, the test marketing clause allows Cinnabon to innovate and adapt to changing consumer preferences, while the franchisee plays a crucial role in providing real-world feedback. However, franchisees should be aware of the potential costs and operational adjustments required to participate effectively in these test marketing programs.