Does Cinnaholic have the right to designate the vendors for maintenance or service contracts on equipment and machinery?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
and continuing expenses (including Royalty Fees). You may desire to obtain greater coverages. The cost of your insurance will vary depending on the insurance carriers' charges, 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 does have the right to designate vendors for maintenance and service contracts on equipment and machinery. Cinnaholic may require franchisees to maintain maintenance or service contracts on designated equipment and machinery, and Cinnaholic has the right to choose the vendors for these contracts. Franchisees are responsible for covering the costs of these contracts.
Cinnaholic also mandates that franchisees enter into service contracts for their business, including a POS system, which is currently the Square POS System, costing $179 per month. This cost is subject to change as vendors adjust their pricing. Cinnaholic also has the right to specify third parties and the required level of participation in programs offering customer service, shopper experience, food safety, or other service programs designed to audit, survey, evaluate, or inspect business operations. Franchisees will bear the cost of maintaining these contracts and participating in these programs.
This means that as a Cinnaholic franchisee, you may not have the freedom to select your own vendors for essential services and maintenance. Cinnaholic's ability to mandate specific vendors allows them to maintain quality control and uniformity across all franchise locations. However, it also means that franchisees may not be able to shop around for the best prices or build relationships with local service providers. Prospective franchisees should consider these potential limitations and costs when evaluating the Cinnaholic franchise opportunity.