Is a Cinnaholic franchisee required to notify the franchisor if they develop a modification 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, if a franchisee develops any new modification, concept, process, improvement, or slogan related to the bakery's operation or the Cinnaholic system, they are required to promptly notify Cinnaholic. This notification must include all necessary information regarding the modification, concept, process, improvement, or slogan.
This requirement ensures that Cinnaholic maintains control over its brand and system standards. Any such modifications developed by the franchisee are considered works made for hire and become the sole and exclusive property of Cinnaholic. The franchisee will not receive compensation for these developments.
Cinnaholic has the right to use these modifications or allow other franchisees to use them without compensating the franchisee who initially developed them. This clause underscores the importance of uniformity and consistency within the Cinnaholic franchise system, as Cinnaholic retains the authority to implement changes and improvements across all locations.