What must a Cinnaholic franchisee do if they want to purchase an item from a supplier that Cinnaholic has not previously approved?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If (i) you wish to purchase any item from a supplier (manufacturer or distributor and service providers, such as food delivery services or applications) we have not previously approved or an item that does not comply with our standards and specifications and (ii) the item has not been designated by us to be exclusively supplied by a designated supplier(s), you must first submit to us a written request for approval. We will establish a procedure for submitting these requests. We will require the proposed supplier to provide us with certain financial and operational information and other information regarding the supplier and the items to be approved. In addition, the proposed supplier must permit our representatives to inspect its facilities (e.g. business offices and/or manufacturing facilities, as applicable). Before we approve a supplier, we will evaluate the economic terms of a possible relationship and ensure that the proposed supplier meets our requirements. We reserve the right, at our option, and at the proposed supplier's expense, to inspect or re-inspect the facilities, equipment, and raw materials of any supplier, at any time. The proposed supplier or you must pay, in advance, a fee not to exceed the reasonable cost of any evaluation, testing, and inspections we undertake. Within a reasonable time frame after we receive the completed request and after we complete any evaluation and inspection or testing, (approximately 45 days), we will notify you in writing of our approval or disapproval of the proposed supplier or item. Generally, we will respond to your requests for supplier approval within a reasonable time period not to exceed 90 days. We are not required to approve any supplier or item not meeting our standards and specifications. We may deny approval for any reason, including our determination to limit the number of approved suppliers. You must not use, offer for sale or sell any of the proposed supplier's products or any other product that does not meet our standards or specifications until you receive our written approval of the proposed supplier or item.
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, a franchisee who wishes to purchase an item from a supplier not previously approved by Cinnaholic must first submit a written request for approval. This requirement applies if the item doesn't comply with Cinnaholic's standards and specifications and hasn't been designated to be exclusively supplied by a specific supplier.
The request must be comprehensive, including financial and operational information about the proposed supplier, as well as details about the items to be approved. The supplier must also allow Cinnaholic's representatives to inspect their facilities, such as business offices or manufacturing plants. The supplier or franchisee is responsible for paying a fee in advance to cover the reasonable costs of any evaluation, testing, and inspections that Cinnaholic undertakes.
Cinnaholic will then evaluate the economic terms of the potential relationship and ensure the supplier meets their requirements. Cinnaholic aims to notify the franchisee in writing of their decision, either approving or disapproving the supplier or item, within approximately 45 days after receiving the completed request and finishing any evaluations, inspections, or testing. However, the response time could extend to 90 days. Cinnaholic reserves the right to deny approval for any reason, including limiting the number of approved suppliers, and the franchisee cannot use or sell the supplier's products until written approval is granted.