Must a Cinnaholic franchisee adhere to Cinnaholic's standards and specifications for bakery construction and design?

ral Contractors and/or Architectural Firms.

You must also adhere to our standards and specifications for the construction and design of the Bakery, which will include requirements for the interior and exterior layout, signage, fixtures, and trade dress including the color scheme. You may purchase these items from any supplier that meets our standards and specifications, unless we designate an approved supplier for an item. In which case, you must purchase the item from the approved supplier. We may, at any time, change, delete, add to, or modify any of our standards and specifications. These changes, deletions, additions, or modifications, which will be uniform for all franchisees, may require additional expenditures by you.

You must prepare all required construction plans and specifications and ensure they comply with building codes and ordinances. If your construction plans and specifications deviate from our plans and specifications, you must obtain our approval of the changes. It is your responsibility to obtain all required licenses, permits, and approvals associated with constructing and operating your Bakery.

Point of Sale Computer System. You must purchase a point of sale ("POS") system defined in Item 11. We will designate one or more suppliers for the particular POS system. We have the right to appoint additional suppliers for these POS system or other POS systems we may designate. Neither our affiliates nor we derive revenue from your purchase of a POS system. We may require you to maintain support service contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the POS system, computer hardware and software, and credit card, debit card and other noncash payment systems. We may designate the vendor(s) for these support service contracts and maintenance service contracts. Currently, we use Square POS System and the cost of the POS system is approximately $1,200, plus $500 for installation. The monthly fee for the POS system is currently $179.

Specifications. We require that at all times you comply with the various operational manuals that we maintain and update for franchisee use, such as, but not limited to our Catering Manual, Food Cost Manual, and the like (collectively referred to by us as the Operations Manual or the Manual). Insurance. You must obtain and maintain, at your own expense, the insurance coverage we require, and you must meet the other insurance-related obligations in the Franchise Agreement. Such insurance as may be required by the terms of any lease for the Franchised Site or, if there is no such lease, You agree to carry fire and extended coverage insurance covering the building and all equipment, supplies, products, inventory, furniture, fixtures and other tangible property located in the Bakery or on the Franchised Site in the amount of the full insurable value of such property. You agree to carry Commercial General Liability Insurance, including coverages for products-completed operations, contractual liability, personal and advertising injury, fire damage, medical expenses, and dram shop/liquor liability, having a combined single limit for bodily injury and property damage of $1,000,000 per occurrence and $2,000,000 in the aggregate (except for fire damage and medical expense coverages, which may have different limits of not less than $300,000 for one fire and $5,000 for one person, respectively);

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)