Can Cinnaholic require franchisees to maintain maintenance or service contracts on designated equipment and machinery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms of payment, and your insurance history.
Maintenance, Service and Support Contracts. We may require you to maintain maintenance contracts or service contracts on all equipment and machinery designated by us (the costs may vary based on the items and the contract you select) and we will have the right to designate the vendor(s) for those contracts. We may also require you to maintain a contract(s), or participate in any of our contracts, with third- party (ies) offering customer service, shopper experience, food safety or other service programs designed to audit, survey, evaluate or inspect business operations. We have the right to specify the third party(ies) and the required level of participation in these programs. You will be responsible for the cost of maintaining these contracts and/or participating in these programs.
We also require you to enter into service contracts for your business which include the following, at the current monthly cost shown (that cost may increase as the vendors each c
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, Cinnaholic has the right to mandate that franchisees maintain maintenance or service contracts on equipment and machinery that Cinnaholic designates. Cinnaholic also reserves the right to choose the vendors for these contracts. The costs associated with these contracts can vary based on the specific items and the contract selected.
In addition to maintenance contracts, Cinnaholic can also require franchisees to maintain contracts or participate in Cinnaholic's contracts with third parties that offer customer service, shopper experience, food safety, or other service programs. These programs are designed to audit, survey, evaluate, or inspect business operations. Cinnaholic has the authority to specify the third parties involved and the required level of participation in these programs, with the franchisee bearing the costs of maintaining these contracts or participating in the programs.
The FDD also specifies that franchisees are required to enter into service contracts for their business, including a POS (Point of Sale) System, specifically the Square POS System, which currently costs $179 per month. This cost is subject to change as the vendors adjust their pricing. Cinnaholic may also require franchisees to maintain support service contracts and/or maintenance service contracts for the POS system, and may designate the vendors for these contracts. The initial cost of the POS system is approximately $1,200, with an additional $500 for installation.