Can the Cinnaholic franchisor modify the Cinnaholic system?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1. Modification by Franchisor. Franchisee recognizes and agrees that from time to time hereafter, Franchisor may change, modify or improve the CINNAHOLIC® System, including, without limitation, modifications to the Operations Manual, the menu and format, the processes and systems to support the business, the menu items and other product ingredients, the products offered for sale, the required equipment, the signage, the presentation and usage of the Marks, and the adoption and use of new, modified or substituted Marks or other proprietary materials. Franchisee agrees to accept, use and/or display for the purposes of this Agreement any such changes, modifications or improvements to the CINNAHOLIC® System, including, without limitation the adoption of new, modified or substituted Marks, as if they were part of the CINNAHOLIC® System as of the Effective Date, and Franchisee agrees to make such expenditures as such changes, modifications or improvements to the CINNAHOLIC® System may require. For purposes of this Agreement, all references to the CINNAHOLIC® System shall include such future changes, modifications and improvements.
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 the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic has the right to modify or improve the Cinnaholic system. These modifications can include changes to the Operations Manual, menu and format, processes and systems, menu items and product ingredients, products offered for sale, required equipment, signage, the presentation and usage of the brand's trademarks, and the adoption of new trademarks or proprietary materials.
As a Cinnaholic franchisee, you are obligated to accept and implement these changes, even if it requires making expenditures to accommodate them. All references to the Cinnaholic system within the franchise agreement will include these future changes and modifications. This means that Cinnaholic can evolve its brand and operational standards, and franchisees must adapt accordingly.
This clause ensures that Cinnaholic can keep up with market trends, improve efficiency, and maintain brand consistency across all locations. While franchisees must comply with these changes, it's also important to maintain open communication with Cinnaholic to understand the reasons behind the modifications and how they will benefit the franchise in the long run. Franchisees also have the opportunity to contribute to the system, but any modifications or improvements developed by the franchisee become Cinnaholic's property.