Who pays for the testing of samples from proposed suppliers for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee desires to purchase any ingredients, products, supplies, furnishings and equipment from suppliers other than those previously approved by Franchisor and such items have not been designated by Franchisor to be exclusively supplied by a designated supplier(s), Franchisee shall first submit to Franchisor a written request for authorization to purchase such items, together with such information and samples as Franchisor may require.
Franchisor shall have the right to require periodically that its representatives be permitted to inspect such items and/or supplies' facilities, and that samples from the proposed suppliers, or of the proposed items, be delivered for evaluation and testing either to Franchisor or to an independent testing facility designated by Franchisor.
Permission for such inspections shall be a condition of the initial and continuing approval of such supplier, manufacturer or distributor.
A charge not to exceed the reasonable cost of the evaluation and testing shall be paid by Franchisee.
Franchisor shall, within 90 days after its receipt of such request and completion of such evaluation and testing (if required by Franchisor), notify Franchisee in writing of its approval or disapproval.
Franchisor may deny such approval for any reason, including its determination to limit the number of approved suppliers.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee wants to use a supplier not already approved by Cinnaholic, the franchisee must request authorization and provide samples for testing. The franchisee is responsible for covering the costs associated with the evaluation and testing of these samples. This charge will not exceed the reasonable cost of the evaluation and testing. Cinnaholic will then notify the franchisee in writing of its approval or disapproval within 90 days of receiving the request and completing the evaluation and testing, if required.
This means that Cinnaholic franchisees have the option to propose alternative suppliers, but they must bear the financial burden of ensuring these suppliers meet Cinnaholic's standards. This process allows franchisees some flexibility in sourcing while maintaining quality control for the Cinnaholic brand.
However, Cinnaholic retains the right to deny approval for any reason, including limiting the number of approved suppliers. This could potentially restrict a franchisee's ability to find more cost-effective or convenient suppliers, even if the proposed supplier meets Cinnaholic's quality standards. Franchisees should consider this potential limitation when evaluating the overall cost and flexibility of the Cinnaholic franchise.