What are the Cinnaholic franchisee's obligations regarding the point of sale system?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Franchisor may require Franchisee to maintain support service contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the POS System, computer hardware and software, and credit card, debit card or other non-cash payment systems. Franchisor shall have the right to designate the vendor(s) for such support service contracts and maintenance service contracts.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must purchase and use a computerized cash collection and data processing system, referred to as the "POS System." This system must adhere to the standards and specifications that Cinnaholic provides, which may be updated periodically in the Operations Manual or otherwise. The franchisee is responsible for entering all sales and other information required by Cinnaholic into the POS System.
Cinnaholic franchisees are also obligated to maintain the POS System in good working order and ensure it is connected to any required telephone system or computer network. They may also be required to configure and connect the POS System to Cinnaholic's systems, allowing Cinnaholic continuous, real-time access to all data stored within the system. Franchisees are responsible for the costs associated with these requirements, including upgrades and updates to maintain compliance with Cinnaholic's standards.
Furthermore, Cinnaholic may require franchisees to pay reasonable fees to Cinnaholic or its designated third parties for support and upgrades to the POS System, as well as for data polling or collection. In addition to the POS System, franchisees must equip their Bakeries with specified computer hardware and software, maintain internet access, and apply for and maintain credit card, debit card, and other non-cash payment systems as required by Cinnaholic. Franchisees may also be required to maintain support and maintenance service contracts with vendors designated by Cinnaholic and implement upgrades and changes to these systems.