factual

What are the Cinnaholic franchisee's obligations regarding technology systems?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

Bakeries on a national, regional or local level. Franchisor may establish procedures and regulations related to these promotions in the Operations Manual and Franchisee agrees to honor and participate in these programs in accordance with such procedures and regulations specified by Franchisor in the Operations Manual or otherwise 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. 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.

10.2. Website. Franchisor currently operates a website related to the CINNAHOLIC® System at www.cinnaholic.com (the "Website"). Franchisor shall have the right to designate a successor Website.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees must adhere to the technology systems that Cinnaholic implements. Cinnaholic may modify its systems, including the Operations Manual, menu, processes, equipment, and even trademarks. Franchisees are obligated to accept and use these changes as if they were part of the original agreement and must cover any associated costs.

Cinnaholic franchisees are responsible for maintaining customer service, shopper experience, and food safety standards through contracts with third parties, as specified by Cinnaholic. The franchisee bears the costs for these services and must participate at the level Cinnaholic requires. Additionally, Cinnaholic can fine a franchisee $100 to $1000 per day for violations of the Operations Manual after providing written notice of non-compliance.

Overall, the franchisee must stay aligned with Cinnaholic's technological and operational standards, bearing the financial responsibility for upgrades, third-party services, and potential fines for non-compliance. This ensures uniformity and quality across all Cinnaholic locations but places a financial burden on the franchisee to keep up with Cinnaholic's evolving systems.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.