Can Cinnaholic designate a single supplier for items used in the Cinnaholic Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described below, you are not obligated to purchase or lease from us, our designees or suppliers approved by us, or under our specifications, any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, or real estate relating to operating your Bakery. To ensure a uniform image and quality of products and services throughout CINNAHOLIC® franchise system, all food products, supplies, ingredients, equipment, furnishings, employee uniforms, fixtures, inventory, paper products, packaging, and other items used, sold, displayed or distributed in your Bakery (i) must comply with our standards and specifications and (ii) from suppliers designated or approved in writing by us. We may designate at any time and for any reason, a single or multiple suppliers for these items and require you to purchase exclusively from the designated supplier or suppliers, which exclusive designated supplier(s) may be us or an affiliate of ours. Currently, we do not intend to be, or to appoint any of our affiliates as, an authorized supplier of any products, supplies, equipment, or other items used in the operation of the Bakery. However, we reserve the right to designate ourselves and/or any of our affiliates as an approved supplier in the future, and we may even designate ourselves or an affiliate as the sole supplier of one or more items, in which case, you would have to buy the item from us or our affiliate at our or their then-current price. Our Operations Manual and other communications will identify our standards and specifications and the names of approved or designated suppliers. If we become a designated supplier, we may charge you a reasonable mark-up, surcharge, and handling fee on any items you purchase from us. Monies you pay to us will include a profit for us. We may also designate a vendor(s) to provide food brokerage services to the CINNAHOLIC® franchise system and such vendor(s) may receive, directly or indirectly, revenue from suppliers based on purchases by CINNAHOLIC® franchisees. The revenue may be based on volume or per unit sales. There are no approved suppliers in which any of our officers own an interest. We do derive revenue, directly or indirectly, that we retain as a profit from suppliers in connection with the services or products they provide to our franchisees.
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 authority to designate a single supplier for items used in the bakery. To maintain uniformity and quality across all Cinnaholic franchises, the brand requires that all food products, supplies, ingredients, equipment, furnishings, employee uniforms, fixtures, inventory, paper products, packaging, and other items used, sold, displayed, or distributed in the bakery must adhere to Cinnaholic's standards and specifications. These items must be sourced from suppliers that Cinnaholic has designated or approved in writing.
Cinnaholic retains the right to designate a single or multiple suppliers for these items at any time and for any reason. This designated supplier or suppliers may be Cinnaholic itself or one of its affiliates. If Cinnaholic or an affiliate is designated as the sole supplier for certain items, franchisees would be required to purchase those items directly from them at the then-current price.
While Cinnaholic currently does not intend to be or appoint its affiliates as authorized suppliers, it reserves the right to do so in the future. If Cinnaholic becomes a designated supplier, it may charge franchisees a reasonable markup, surcharge, and handling fee on any items purchased. The Operations Manual and other communications will provide franchisees with the standards, specifications, and names of approved or designated suppliers. This system allows Cinnaholic to control product quality and potentially generate revenue through the supply chain.