Can Cinnaholic 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 Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic has the right to modify or improve the Cinnaholic system. This includes changes to the Operations Manual, menu, format, processes, systems, menu items, product ingredients, products offered, required equipment, signage, the presentation and usage of the Marks, and the adoption of new Marks or proprietary materials.
As a franchisee, you must accept and use these changes, even if they require expenditures. All references to the Cinnaholic system include these future modifications and improvements. If a franchisee develops any modification, concept, process, improvement, or slogan, it is considered a work made for hire, and the franchisee must notify Cinnaholic and provide all necessary information without compensation. Cinnaholic then has the sole and exclusive property rights to use or allow other franchisees to use these modifications without compensating the originating franchisee.
This clause is typical in franchising, as it allows Cinnaholic to maintain brand consistency and adapt to market changes. However, it also means that franchisees must be prepared to invest in updates and changes to the system, even if they were not initially anticipated. Franchisees do not receive compensation for their own innovations that Cinnaholic adopts. This underscores the importance of carefully reviewing the franchise agreement and understanding the obligations and responsibilities of both the franchisor and franchisee.