Is a Cinnaholic franchisee required to become a member of purchasing and/or distribution cooperatives designated by the franchisor?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xviii) Become a member of any purchasing and/or distribution cooperative(s)/association(s)/program(s) designated by Franchisor and/or established by Franchisor for the CINNAHOLIC® System, remain a member in good standing thereof throughout the term of this Agreement and pay all membership fees or fees on purchases that are assessed by such purchasing and/or distribution cooperative(s)/association(s)/program(s).
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are required to become members of purchasing and/or distribution cooperatives/associations/programs if designated or established by Cinnaholic. Franchisees must remain members in good standing throughout the term of the agreement and pay all assessed membership fees or fees on purchases.
This means that as a Cinnaholic franchisee, you may be obligated to join and financially contribute to purchasing and distribution cooperatives that Cinnaholic designates. These cooperatives could be established either by Cinnaholic itself or by a third party.
The requirement ensures that Cinnaholic franchisees participate in programs deemed essential for the brand's success. Franchisees need to factor in these potential membership and purchase fees when assessing the overall cost of operating a Cinnaholic franchise.