Can the Cinnaholic franchisor inspect a proposed supplier's facilities?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (viii) If Franchisee desires to purchase any ingredients, products, supplies, furnishings and equipment from suppliers other than those previously approved by Franchisor and such items have not been designated by Franchisor to be exclusively supplied by a designated supplier(s), Franchisee shall first submit to Franchisor a written request for authorization to purchase such items, together with such information and samples as Franchisor may require.
Franchisor shall have the right to require periodically that its representatives be permitted to inspect such items and/or supplies' facilities, and that samples from the proposed suppliers, or of the proposed items, be delivered for evaluation and testing either to Franchisor or to an independent testing facility designated by Franchisor.
Permission for such inspections shall be a condition of the initial and continuing approval of such supplier, manufacturer or distributor.
A charge not to exceed the reasonable cost of the evaluation and testing shall be paid by Franchisee.
Franchisor shall, within 90 days after its receipt of such request and completion of such evaluation and testing (if required by Franchisor), notify Franchisee in writing of its approval or disapproval.
Franchisor may deny such approval for any reason, including its determination to limit the number of approved suppliers.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee wants to purchase ingredients, products, supplies, furnishings, and equipment from suppliers not already approved by Cinnaholic, and if these items are not designated to be exclusively supplied by a specific supplier, the franchisee must first get written authorization from Cinnaholic. As part of this process, Cinnaholic has the right to periodically inspect the facilities of these proposed suppliers.
Cinnaholic can require that its representatives be permitted to inspect the supplier's facilities. Additionally, Cinnaholic can request samples from the proposed suppliers or of the proposed items for evaluation and testing, either by Cinnaholic itself or by an independent testing facility designated by Cinnaholic. The approval of the supplier, manufacturer, or distributor is conditional upon allowing these inspections, both initially and on an ongoing basis.
The franchisee is responsible for covering the reasonable costs associated with the evaluation and testing. Cinnaholic will then notify the franchisee in writing of its approval or disapproval within 90 days after receiving the request and completing the evaluation and testing, if required. Cinnaholic retains the right to deny approval for any reason, including limiting the number of approved suppliers.