Did Cinnaholic or its affiliates receive any revenues from required purchases and leases during the fiscal year ended December 31, 2024?

According to Cinnaholic's 2025 Franchise Disclosure Document, neither Cinnaholic nor its affiliates received any revenues from required purchases and leases during the fiscal year ended December 31, 2024. This means that Cinnaholic franchisees were not obligated to make purchases or leases that directly generated revenue for the franchisor or its affiliates during this period.

However, the FDD also states that Cinnaholic and its affiliates have the right to receive payments or other benefits, such as rebates, discounts, and allowances, from authorized suppliers based on their dealings with franchisees. For the fiscal year ended December 31, 2024, Cinnaholic received $3,735 in rebates from Fun Express, $22,000 in rebates from Ventura Foods, and $6,523 in rebates from Saebert. These rebates are not considered revenue from required purchases and leases but rather incentives from suppliers based on the volume of purchases made by the Cinnaholic franchise system.

Prospective franchisees should be aware that Cinnaholic may designate itself or its affiliates as approved suppliers in the future, potentially requiring franchisees to purchase items directly from them. If this occurs, Cinnaholic may charge a reasonable markup, surcharge, and handling fee, which would include a profit for the company. While this was not the case in 2024, it remains a possibility that could affect the cost of goods for franchisees in the future.