Can a Cinnaholic franchisee propose modifications to the Cinnaholic system?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
8.2. Modification by Franchisee. If Franchisee develops any new modification, concept, process, improvement or slogan in the operation or promotion of the Bakery or to the CINNAHOLIC® System, the same shall be deemed a work made for hire, and Franchisee shall promptly notify Franchisor of, and provide Franchisor with all necessary information, regarding such modification, concept, process, improvement or slogan, without compensation to Franchisee. Franchisee acknowledges that any such modification, concept, process, improvement or slogan shall become Franchisor's sole and exclusive property and that Franchisor may use or allow other franchisees to use the same in connection with the CINNAHOLIC® System or the operation of CINNAHOLIC® Bakeries, without compensation to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees can propose modifications, concepts, processes, improvements, or slogans related to the operation or promotion of their bakery or the Cinnaholic system. However, any such developments are considered "works made for hire." This means the franchisee must promptly notify Cinnaholic of the new development and provide all necessary information without receiving compensation.
Cinnaholic retains sole and exclusive ownership of any modification, concept, process, improvement, or slogan developed by a franchisee. Cinnaholic has the right to use these developments or allow other franchisees to use them within the Cinnaholic system or the operation of Cinnaholic bakeries, again without compensating the franchisee who originated the idea.
This clause highlights that while Cinnaholic encourages innovation from its franchisees, the franchisor ultimately controls and owns any improvements to the system. A prospective franchisee should consider this when evaluating the level of creative control and potential benefits they might expect from contributing to the Cinnaholic system.