Is a Cinnaholic franchisee allowed to sell products at wholesale?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not restrict you from soliciting any customers, no matter who they are or where they are located. However, you may only sell products to consumers for consumer purposes (and not for resale). You may not sell products at wholesale.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 41–42)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are specifically restricted from selling products at wholesale. The FDD states that franchisees may only sell products to consumers for consumer purposes and not for resale.
This restriction means a Cinnaholic franchisee must focus on direct sales to individual customers. They cannot supply Cinnaholic products to other businesses for resale. This limitation is fairly standard in franchise agreements, as franchisors typically want to control brand distribution and maintain consistent pricing across all channels.
While Cinnaholic franchisees are prohibited from wholesale sales, they are permitted to offer delivery and catering services within a limited radius. The FDD specifies that these services can extend up to 10 miles from the bakery, using ground transportation. This allows franchisees to tap into local events and business catering opportunities, expanding their customer base beyond individual walk-in customers.