Does the Cinnaholic franchise system currently have any purchasing or distribution cooperatives?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We estimate that purchases and leases made by you from designated or approved suppliers, or according to our standards and specifications, represents 80% or more of your total cost of establishing, and approximately 90% of the total cost of operating, your Bakery. There are currently no purchasing or distribution cooperatives within the CINNAHOLIC® franchise system. In the future, we may require you to (i) become a member of any purchasing and/or distribution cooperative(s)/association(s)/program(s) designated by us and/or established by us for the CINNAHOLIC® franchise system, (ii) remain a member in good standing of the purchasing and/or distribution cooperative(s)/association(s)/program(s), and (iii) pay all membership dues or fees on purchases that are assessed by the purchasing and/or cooperative(s)/association(s)/program(s).
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, the franchise system does not currently have any purchasing or distribution cooperatives. However, Cinnaholic estimates that purchases and leases made from designated or approved suppliers, or according to their standards and specifications, account for a significant portion of a franchisee's expenses. Specifically, this represents 80% or more of the total cost of establishing a Cinnaholic Bakery and approximately 90% of the total cost of operating the Bakery.
Cinnaholic retains the right to mandate that franchisees become members of any purchasing or distribution cooperatives, associations, or programs they designate or establish in the future. If this occurs, franchisees would be required to maintain good standing in these organizations and pay all associated membership dues or fees assessed on purchases.
While no such cooperatives exist currently, prospective franchisees should be aware of the potential for this requirement in the future. This could impact operating costs and potentially streamline supply chain management, but it also introduces an element of dependence on Cinnaholic's chosen cooperatives. It would be prudent for potential franchisees to inquire about the criteria Cinnaholic would use to establish or designate a cooperative and how these changes might affect their bottom line.