Does Cinnaholic currently require franchisees to purchase opening inventory from them or their affiliates?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently, you do not have to purchase any opening inventory from us or our affiliates. There may be occasions when you must purchase goods and services from us or our affiliates. These circumstances are described in more detail in Items 6, 7, and 8. The cost of these goods and services, if any, will be in addition to the Development Fee and initial franchise fee.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are not currently required to purchase opening inventory from Cinnaholic or its affiliates. However, the FDD states that there may be occasions when franchisees must purchase goods and services from Cinnaholic or its affiliates, as detailed in Items 6, 7, and 8 of the document.
While not mandatory at the outset, this policy leaves open the possibility that Cinnaholic could require franchisees to purchase certain goods or services from them or affiliated suppliers in the future. These potential purchases would be in addition to the Development Fee and initial franchise fee.
Prospective franchisees should carefully review Items 6, 7, and 8 of the FDD to understand the circumstances under which they might be required to purchase from Cinnaholic or its affiliates. Understanding these potential requirements is crucial for accurately estimating the total investment and operating costs of a Cinnaholic franchise.