Is a Cinnaholic franchisee required to maintain contracts with third parties offering customer service or food safety programs?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xix) As required by Franchisor, maintain a contract(s) with, or participate in any Franchisor contract(s), with any third-party(ies) offering customer service, shopper experience, food safety or other service programs designed to audit, survey, evaluate or inspect business operations.
Franchisee understands that Franchisor has the right to specify the third party(ies) and the required level of participation in such programs and Franchisee will bear the cost.
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 maintain contracts with third parties for specific services. Cinnaholic, at its discretion, can mandate that franchisees enter into contracts with third-party providers for customer service, shopper experience, food safety, or other service programs. These programs are designed to audit, survey, evaluate, or inspect the business operations of the franchise.
This requirement means that a Cinnaholic franchisee may not have a choice in selecting these service providers. Cinnaholic has the right to specify which third parties the franchisee must work with and the level of participation required in these programs.
The franchisee is responsible for covering the costs associated with these third-party contracts. This could impact the franchisee's operating expenses and profitability, so prospective franchisees should factor in these potential costs when evaluating the Cinnaholic franchise opportunity.