How does a Cinnaholic franchisee conduct business at their Bakery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement, respectively.
We also require that each Bakery be open no less than 70 hours per week as specified in our Operations Manual from time-to-time.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must conduct the business operated at your Bakery as required by the Operations Manual and the Franchise Agreement. You must offer and sell only those products and services approved by us. Further, you must offer all goods and services that we designate as required for all franchisees. These required goods and services include custom gourmet cinnamon rolls and baked goods, and other food products and beverages. We have the right to add additional authorized goods and services that you must offer. This means that we have the right to require you to carry the required menu items that we dictate and that we determine are appropriate for CINNAHOLIC® Bakeries. There are no limits on our right to make modifications to our approved menu, whether by a change in the Operations Manual or through an amendment to the Franchise Agreement or by another form of written directive.
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. In addition, you may provide delivery and catering services from the Bakery within or without your Franchise Territory in connection with providing these delivery and catering services within a reasonable distance from the site of the Bakery not to exceed 10 miles, provided the deliveries are made by ground transportation. Subject to this maximum mileage requirement, you may provide catering and delivery services in the Franchise Territories of other CINNAHOLIC® franchisees, and other CINNAHOLIC® franchisees may provide the same services in your Franchise Territory. You may not ship products within or without your Franchise Territory.
You may not have or use, or permit the presence or use of, video game machines or vending machines or any similar device or machine at the Bakery unless we consent in writing.
ITEM 17 RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
Development Agreement
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 3 | Expires the date after operations of the final Bakery to be established are required to begin as provided on the Development Schedule. |
| b. | Renewal or extension of | Not Applicable | Not Applicable |
| the term | |||
| c. | Requirements for you to | Not Applicable | Not Applicable |
| renew or extend | |||
| d. | Termination by franchisee | Section 12.1 | You |
| can | |||
| terminate | |||
| only | |||
| if | |||
| we | |||
| fail | |||
| to | |||
| cure | |||
| a | |||
| default | |||
| under | |||
| the | |||
| Development | |||
| Agreement | |||
| within | |||
| 90 | |||
| days | |||
| (or | |||
| 150 | |||
| days | |||
| in | |||
| some | |||
| instances) | |||
| after | |||
| you | |||
| give | |||
| us | |||
| written | |||
| notice | |||
| of | |||
| termination. | |||
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable. |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees must operate their bakeries according to the standards outlined in the Operations Manual and the Franchise Agreement. This includes offering and selling only approved products and services, with a requirement to offer all goods and services designated as mandatory by Cinnaholic, such as custom gourmet cinnamon rolls, baked goods, and other food and beverage items. Cinnaholic retains the right to modify the approved menu. Franchisees are permitted to solicit customers without restriction but are limited to selling products to consumers for consumer purposes only, prohibiting wholesale sales.
Cinnaholic franchisees can provide delivery and catering services within a reasonable distance from their bakery, not exceeding 10 miles, using ground transportation. These services can extend both within and outside the franchisee's territory, even into other Cinnaholic franchise territories. However, franchisees are prohibited from shipping products. Additionally, franchisees cannot install or use video game machines, vending machines, or similar devices at the bakery without written consent from Cinnaholic.
To maintain uniformity and uphold the brand's reputation, Cinnaholic requires franchisees to adhere to specific standards for the bakery's appearance, services, products, and advertising. Franchisees must prepare and sell products in accordance with Cinnaholic's specifications, standards, business practices, and policies, including health, sanitation, and cleanliness standards. They must also use printed paper containers, boxes, wrappers, trays, soft drink cups, and carry-out bags that meet Cinnaholic's designated standards. Franchisees are required to ensure that a trained individual, who has completed the initial training program, is present at the bakery during all normal business hours, and each Bakery must be open no less than 70 hours per week.
Furthermore, franchisees must obtain written approval from Cinnaholic before making any physical changes to the bakery's premises from the original blueprint specifications or approved remodeling plans. Cinnaholic may also require franchisees to make reasonable alterations to the bakery to conform to current marketing and operating standards. Franchisees are responsible for promptly paying all taxes related to the bakery's operation, including state employment tax and state sales tax, and must prevent any tax sale or seizure of the bakery or its assets.