Can Cinnaholic deny approval of a supplier for any reason?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If (i) you wish to purchase any item from a supplier (manufacturer or distributor and service providers, such as food delivery services or applications) we have not previously approved or an item that does not comply with our standards and specifications and (ii) the item has not been designated by us to be exclusively supplied by a designated supplier(s), you must first submit to us a written request for approval. We will establish a procedure for submitting these requests. We will require the proposed supplier to provide us with certain financial and operational information and other information regarding the supplier and the items to be approved. In addition, the proposed supplier must permit our representatives to inspect its facilities (e.g. business offices and/or manufacturing facilities, as applicable). Before we approve a supplier, we will evaluate the economic terms of a possible relationship and ensure that the proposed supplier meets our requirements. We reserve the right, at our option, and at the proposed supplier's expense, to inspect or re-inspect the facilities, equipment, and raw materials of any supplier, at any time. The proposed supplier or you must pay, in advance, a fee not to exceed the reasonable cost of any evaluation, testing, and inspections we undertake. Within a reasonable time frame after we receive the completed request and after we complete any evaluation and inspection or testing, (approximately 45 days), we will notify you in writing of our approval or disapproval of the proposed supplier or item. Generally, we will respond to your requests for supplier approval within a reasonable time period not to exceed 90 days. We are not required to approve any supplier or item not meeting our standards and specifications. We may deny approval for any reason, including our determination to limit the number of approved suppliers. You must not use, offer for sale or sell any of the proposed supplier's products or any other product that does not meet our standards or specifications until you receive our written approval of the proposed supplier or item.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to deny approval of a supplier for any reason. If a franchisee wishes to use a supplier that Cinnaholic has not previously approved, the franchisee must submit a written request for approval. Cinnaholic will then require the proposed supplier to provide financial and operational information and may inspect the supplier's facilities. The franchisee or supplier may also have to pay a fee for the evaluation, testing, and inspections.
Cinnaholic states that it is not required to approve any supplier that does not meet its standards and specifications. The FDD specifies that Cinnaholic may deny approval for any reason, including a determination to limit the number of approved suppliers. The franchisee cannot use the proposed supplier's products until written approval is received from Cinnaholic.
This policy gives Cinnaholic broad discretion over its supply chain. While this ensures uniformity and quality control, it also means a franchisee's preferred supplier may be rejected even if they meet basic standards. Prospective franchisees should consider this when evaluating the flexibility and potential costs associated with sourcing products and services for their Cinnaholic bakery.