What is a Cinnaholic franchisee required to maintain at their own expense?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ise in writing. Franchisee understands that its participation in these programs is essential to its success and that its participation may entail some cost to Franchisee. Franchisee agrees that Franchisor has no obligation to reimburse Franchisee for any costs it incurs due to its mandatory participation in these special promotional programs.
- (xvii) Without limiting any of Franchisee's other obligations under this Agreement, at the request of Franchisor, but not more often than once every 5 years, unless sooner required by Franchisee's lease, Franchisee shall refurbish the premises of the Bakery at its expense, to conform to the Bakery, trade dress, color schemes and presentation of the Marks in a manner consistent with the thencurrent image for new Bakeries ("Refurbishments"). Refurbishments may include structural changes, installation of new equipment and signs, remodeling, redecoration and modifications to existing improvements. Refurbishments are intended to be large-scale re-equipping, refurbishing and remodeling of the Bakery, and nothing contained in this Subsection (xvii) of this Agreement will limit Franchisee's other obligations under this Agreement or the Operations Manual.
- (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).
- (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.
10. TECHNOLOGY SYSTEMS AND WEBSITE
10.1. Point of Sale System. Franchisee, at its expense, must purchase and use a computerized cash collection and data processing system (the "POS System") that meets the standards and specifications provided by Franchisor from time to time in the Operations Manual or otherwise. Franchisee must enter all sales and other information Franchisor requires in the POS System. Franchisor may periodically require Franchisee, at its expense, to upgrade or update the POS System to remain in compliance with the standards and specifications required by Franchisor. Franchisee, at its expense, must maintain the POS System in good working order and connected to any telephone system or computer network that Franchisor requires. Franchisor may require Franchisee, at its expense, to configure and connect the POS System to Franchisor's systems to provide Franchisor with continuous real-time access to all information and data stored on the POS System. Franchisor may require Franchisee to pay Franchisor or its designated third parties reasonable fees to support and upgrade the POS System and a reasonable fee to Franchisor or its designated third party for polling or collecting data from the POS System. In addition to the POS System, Franchisee, at its expense, must equip the Bakery with the computer hardware and software that Franchisor specifies periodically and maintain access to the Internet or other computer network(s) that Franchisor specifies. In addition, Franchisee, at its expense, must also apply for and maintain other credit card, debit card or other non-cash payment systems that Franchisor periodically requires.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are responsible for several ongoing expenses. Cinnaholic franchisees must pay for refurbishments to keep the bakery up to date with the brand's current image. These refurbishments, done at the franchisee's expense, may be required every five years or sooner if mandated by the lease agreement. These updates can include structural changes, new equipment and signs, remodeling, redecoration, and modifications to existing improvements.
Cinnaholic franchisees are also required to become members of purchasing and distribution cooperatives designated by Cinnaholic, and they must maintain this membership in good standing, covering all associated membership fees or fees on purchases. Additionally, franchisees must maintain contracts with third-party service providers for customer service, shopper experience, food safety, or other service programs if required by Cinnaholic, bearing the costs for these services.
Furthermore, Cinnaholic franchisees must implement a training program for their employees, covering the costs of this training. Franchisees and their managers/employees may also be required to attend additional training programs or conferences, with the franchisee responsible for travel and living expenses, as well as any fees for these events. Franchisees are also obligated to spend a minimum of 2% of gross sales per calendar quarter on local market advertising. If a franchisee fails to meet this requirement, Cinnaholic has the right to spend up to 2% of the bakery's gross sales on local advertising and require reimbursement from the franchisee.