Can the Cinnaholic franchisor profit from supplying items to franchisees?

According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor can profit from supplying items to its franchisees. Cinnaholic franchisees must purchase ingredients, products, supplies, furnishings, and equipment that conform to the standards and specifications designated by the franchisor. These items must be purchased from suppliers that the franchisor designates or approves in writing. The franchisor can designate itself or an affiliate as the exclusive supplier. If Cinnaholic designates itself as a supplier, it has the right to earn a profit on the items it supplies.

Cinnaholic and its affiliates may also receive payments, discounts, or other consideration from suppliers based on the suppliers' dealings with franchisees. The franchisor is not required to provide an accounting of these supplier payments to franchisees or share the benefits.

If a franchisee wants to purchase items from suppliers not already approved by Cinnaholic, they must submit a written request for authorization. The franchisor can require inspections of the items and the supplier's facilities, with the franchisee bearing the cost of evaluation and testing. Cinnaholic has 90 days to approve or disapprove the request and can deny approval for any reason, including limiting the number of approved suppliers. This system allows Cinnaholic to maintain quality control and potentially generate revenue through its supply chain.