What is the dependency for a Cinnaholic franchisee to use a new supplier?
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
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, if a franchisee wishes to purchase items from a supplier not previously approved by Cinnaholic, or items that do not meet Cinnaholic's standards and specifications, they must first submit a written request for approval. This requirement does not apply to items that Cinnaholic has designated to be exclusively supplied by a specific supplier. This process ensures that all products used in the Cinnaholic franchise system meet the franchisor's standards for quality and uniformity.
The approval process involves the proposed supplier providing financial, operational, and other relevant information to Cinnaholic. Additionally, the supplier must allow Cinnaholic's representatives to inspect their facilities, including business offices and manufacturing facilities, if applicable. Cinnaholic will evaluate the economic terms of the potential relationship and ensure that the supplier meets all requirements before granting approval. Cinnaholic also reserves the right to inspect or re-inspect the supplier's facilities, equipment, and raw materials at any time, at the supplier's expense.
Furthermore, the proposed supplier or the franchisee must pay a fee in advance to cover the reasonable costs of any evaluation, testing, and inspections that Cinnaholic undertakes. After receiving the completed request and finishing the evaluation, inspection, and testing, Cinnaholic will notify the franchisee in writing of their approval or disapproval of the proposed supplier or item, generally within approximately 45 days, but not exceeding 90 days. Cinnaholic is not obligated to approve any supplier or item that does not meet their standards. This rigorous approval process ensures that all suppliers meet Cinnaholic's standards, but it also places the onus on the franchisee to manage this process and associated costs.