When is the POS service fee due for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $40,000 for each Bakery | Lump Sum | Will be prepaid as part of the Development Fee that is paid upon signing the Development Agreement | Us |
| Rent | $5,000 to | As | As Arranged | Landlord |
| (See Note 2) | $10,000 | Arranged | ||
| Security Deposit (See Note 3) | $3,000 to $10,000 | As Arranged | As Arranged | Landlord |
| Project Management Fee (See Note 4) | $1,795 | As Arranged | Once Franchised Location is Leased | Us |
| Real Estate and Improvements (See Note 5) | $75,000 to $220,000 | As Arranged | Before Opening | Landlord, Contractors |
| Travel and Living Expenses while Training (See Note 6) | $3,000 to $10,000 | As Incurred | During Training | Hotels, Bakeries |
| Furnishings, Fixtures, Equipment and Decorating (See Note 7) | $75,000 to $150,000 | As Arranged | Before Opening | Suppliers, Contractors |
| Signage | $3,000 to | As | Before Opening | Suppliers, |
| (See Note 8) | $7,500 | Arranged | Contractors | |
| Opening Inventory | $3,000 to $5,000 | As Arranged | Before Opening | Suppliers |
| Computer Hardware/ Software | $1,000 to | As | Before Opening | Suppliers, |
| $2,000 | Arranged | Contractors | ||
| Technology Fee | $750 $250 per/month | As Arranged | Monthly, upon opening | Us |
| POS Service Fee | $537 | As | Monthly, upon | Suppliers |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the POS (Point of Sale) service fee, which ranges from $179 to $537 per month, is due monthly upon opening the franchise. This fee is paid to suppliers and is considered part of the initial investment needed to start the business.
As a prospective franchisee, it's important to factor this ongoing monthly expense into your financial projections. The POS system is crucial for managing sales, inventory, and customer data, so understanding the associated costs is essential for budgeting and financial planning. The variability in the fee amount suggests that different POS systems or service levels may be available, so it would be prudent to discuss the options with Cinnaholic to determine the best fit for your business needs.
Franchisors commonly charge technology fees and/or require specific POS systems, so this is not unusual. However, franchisees should confirm exactly what the POS service fee covers, what hardware/software is included, and whether there are any additional costs for updates, maintenance, or support. Understanding these details will help in accurately forecasting expenses and evaluating the overall profitability of the Cinnaholic franchise.