Can Cinnaholic designate a vendor to provide food brokerage services to the Cinnaholic franchise system?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to designate a vendor or vendors to provide food brokerage services to the Cinnaholic franchise system. These vendors may receive revenue, either directly or indirectly, from suppliers based on the purchases made by Cinnaholic franchisees. This revenue could be based on the volume of sales or per-unit sales.

This means that Cinnaholic franchisees may be required to utilize a food brokerage service designated by Cinnaholic, which could impact their costs and operational procedures. The designated vendor may receive compensation from the suppliers based on the franchisees' purchasing volume, potentially influencing which suppliers are favored within the system.

Prospective franchisees should inquire about the specifics of any such arrangements, including the criteria for selecting these vendors, the potential costs to franchisees, and how these arrangements might affect the pricing and availability of supplies. Understanding these relationships is crucial for assessing the overall financial implications of operating a Cinnaholic franchise.