What is the POS service fee 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, franchisees must pay a POS (Point of Sale) service fee. This fee is initially $537, followed by a monthly charge of $179. This fee is paid to suppliers and is due monthly upon opening the Cinnaholic bakery.
The POS system is a critical component of the business, handling transactions, tracking inventory, and managing customer data. The initial $537 likely covers the setup and configuration of the POS system, while the $179 monthly fee probably covers ongoing software licenses, updates, maintenance, and support.
Prospective Cinnaholic franchisees should factor this ongoing expense into their financial projections. It is also important to understand what specific services and features are included in the POS service fee. Franchisees should inquire about the terms of the POS service agreement, including any potential price increases or additional fees for extra features or support.