Does Cinnaholic Franchisor have the right to designate equipment and machinery that requires maintenance contracts?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall also maintain maintenance contracts and/or service contracts on all equipment and machinery designated by Franchisor and Franchisor shall have the right to designate the vendor(s) for such contracts and the requirements for the contracts.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are required to maintain maintenance contracts on equipment and machinery that Cinnaholic designates. Cinnaholic also has the right to specify the vendors for these maintenance contracts, as well as the requirements for the contracts themselves.
This means that as a Cinnaholic franchisee, you may not have the freedom to choose your own service providers for equipment maintenance. Cinnaholic can mandate that you use specific vendors they approve and adhere to the terms they set for those contracts. This could potentially impact your operating costs and flexibility in managing your business.
Furthermore, Cinnaholic retains the right to inspect the bakery and test equipment to ensure compliance with their standards. If a franchisee fails to maintain the quality standards, Cinnaholic can assign personnel to train the franchisee's employees, with the franchisee bearing all associated costs, including transportation, lodging, and compensation. This reinforces the importance of adhering to Cinnaholic's designated maintenance and service contract requirements to avoid potential intervention and additional expenses.