What is the condition for initial and continuing approval of a supplier for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee desires to purchase any ingredients, products, supplies, furnishings and equipment from suppliers other than those previously approved by Franchisor and such items have not been designated by Franchisor to be exclusively supplied by a designated supplier(s), Franchisee shall first submit to Franchisor a written request for authorization to purchase such items, together with such information and samples as Franchisor may require.
Franchisor shall have the right to require periodically that its representatives be permitted to inspect such items and/or supplies' facilities, and that samples from the proposed suppliers, or of the proposed items, be delivered for evaluation and testing either to Franchisor or to an independent testing facility designated by Franchisor.
Permission for such inspections shall be a condition of the initial and continuing approval of such supplier, manufacturer or distributor.
A charge not to exceed the reasonable cost of the evaluation and testing shall be paid by Franchisee.
Franchisor shall, within 90 days after its receipt of such request and completion of such evaluation and testing (if required by Franchisor), notify Franchisee in writing of its approval or disapproval.
Franchisor may deny such approval for any reason, including its determination to limit the number of approved suppliers.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, a key condition for both the initial and ongoing approval of any supplier, manufacturer, or distributor is granting Cinnaholic's representatives the right to inspect the supplier's facilities. This permission must be granted for the supplier to gain and maintain approval.
Specifically, if a Cinnaholic franchisee wishes to source ingredients, products, supplies, furnishings, or equipment from a supplier not already approved by Cinnaholic, they must first seek written authorization from Cinnaholic. This request must include any information and samples that Cinnaholic requires. Cinnaholic then has the right to have its representatives inspect the supplier's facilities and/or request samples for evaluation and testing, either by Cinnaholic itself or by an independent testing facility designated by Cinnaholic.
The franchisee is responsible for covering the costs associated with the evaluation and testing, up to a reasonable amount. Cinnaholic will then notify the franchisee in writing of its decision within 90 days of receiving the request and completing the evaluation and testing, if required. Cinnaholic retains the right to deny approval for any reason, including limiting the number of approved suppliers.
This process ensures that all Cinnaholic locations maintain consistent quality and adhere to brand standards. It also gives Cinnaholic significant control over the supply chain, which is common in franchising. Prospective franchisees should be aware of these requirements and the associated costs and timeframes when considering alternative suppliers.