What action must a Cinnaholic franchisee take upon receiving a written notice of revocation regarding a supplier or product?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We may revoke our approval of particular goods or services, or of the supplier that supplies them, if we determine, in our sole discretion, that they no longer meet our standards or specifications. If you receive a written notice of revocation from us, you must stop selling disapproved products and/or stop purchasing from the disapproved supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, if a franchisee receives written notice of revocation from Cinnaholic regarding a supplier or product, they must immediately cease selling the disapproved products and/or stop purchasing from the disapproved supplier. This requirement ensures that all Cinnaholic locations maintain consistent quality and standards, as the franchisor has the authority to revoke approval of suppliers or products that no longer meet their specifications.
This stipulation is important for prospective franchisees to understand, as it directly impacts their operational flexibility and supply chain management. Franchisees must be prepared to adapt quickly to changes in approved suppliers or products, which could affect their costs and potentially disrupt their business operations. Failure to comply with Cinnaholic's directives on approved suppliers and products could result in penalties or even termination of the franchise agreement.
In the franchise industry, it is common for franchisors to maintain strict control over the supply chain to ensure brand consistency and quality. This control often includes the right to approve or disapprove suppliers and products. Cinnaholic's policy aligns with this industry practice, giving them the necessary authority to maintain standards across all franchise locations. Franchisees should carefully review the list of approved suppliers and understand the process for requesting approval of new suppliers to mitigate potential disruptions.