If Cinnaholic modifies the system, is a franchisee required to make expenditures to implement those changes?
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to modify or improve the Cinnaholic system. These modifications can include changes to the Operations Manual, menu, processes, systems, menu items, product ingredients, required equipment, signage, and trademarks.
As a Cinnaholic franchisee, you are obligated to accept and implement these changes. This includes adopting new or modified trademarks. More importantly, the franchise agreement stipulates that franchisees must make the expenditures necessary to implement these changes or improvements to the Cinnaholic system.
This means that if Cinnaholic decides to update its menu boards, introduce new equipment, or change its branding, franchisees will be responsible for covering the costs associated with these changes. This could involve purchasing new equipment, updating signage, or remodeling the store to align with the updated brand standards. Franchisees should carefully consider the potential financial impact of these required updates when evaluating the Cinnaholic franchise opportunity.