Do any officers of Cinnaholic own an interest in any of the approved suppliers?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
may be based on volume or per unit sales. There are no approved suppliers in which any of our officers own an interest. We do derive revenue, directly or indirectly, that we retain as a profit from suppliers in connection with the services or products they provide to our franchisees.
We and our affiliates have the right to receive payments or other benefits like rebates, discounts, and allowances from authorized suppliers based upon their dealings with you and other franchisees and we may use the monies we receive without restriction for any purpose we deem appropriate or necessary. Additionally, we have received rebates from various suppliers which we have placed directly into our Marketing Fund. Suppliers may pay us based upon the quantities of products the CINNAHOLIC® franchise system purchases from them. These fees will usually be based upon an amount per case or an amount per pound. We may receive fees from a supplier as a condition of our approval of that supplier. We do not provide material benefits to franchisees (for example, renewal of existing or granting additional franchises) based on their use of designated or approved suppliers. For the fiscal year ended December 31, 2024, we received $3,735 in rebates from Fun Express, $22,000 in rebates from Ventura Foods, and $6,523 in rebates from Saebert.
We may, when appropriate, negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of the System. Some of our current approved suppliers include Sysco Foods and Tom Tedrow Architects. We may negotiate supply arrangements with suppliers for the benefit of franchisees. While we are currently developing several such arrangements, none have yet been finalized. We have not currently, but we may in the future, negotiate supply arrangements with suppliers for the benefit of franchisees. There are no approved suppliers in which any of our officers own an interest. We have negotiated price terms with some suppliers. In the future, there may be various vendors and suppliers that contribute to the cost of the annual convention for CINNAHOLIC® franchise system (the "Convention"). Monies from vendors and suppliers that are used to pay for the cost of
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, no officers of Cinnaholic own an interest in any of the approved suppliers. However, Cinnaholic does derive revenue, directly or indirectly, that it retains as profit from suppliers in connection with the services or products they provide to franchisees. Cinnaholic and its affiliates have the right to receive payments or other benefits like rebates, discounts, and allowances from authorized suppliers based upon their dealings with franchisees, and they may use these monies without restriction for any purpose they deem appropriate or necessary.
For the fiscal year ended December 31, 2024, Cinnaholic received $3,735 in rebates from Fun Express, $22,000 in rebates from Ventura Foods, and $6,523 in rebates from Saebert. These fees are usually based upon an amount per case or an amount per pound. Cinnaholic may also receive fees from a supplier as a condition of their approval of that supplier.
Cinnaholic may negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of the System. Some of Cinnaholic's current approved suppliers include Sysco Foods and Tom Tedrow Architects. Cinnaholic may negotiate supply arrangements with suppliers for the benefit of franchisees. Monies from vendors and suppliers that are used to pay for the cost of the annual convention for the Cinnaholic franchise system will not be revenue to Cinnaholic.