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What are the specific obligations of a Cinnaholic franchisee regarding the use of point-of-sale (POS) systems and other technology (Item 9), and how does this relate to the franchisor's requirements for data collection and reporting (Item 6)?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

ice, shopper experience, food safety or other service programs designed to audit, survey, evaluate or inspect business operations. Franchisee understands that Franchisor has the right to specify the third party(ies) and the required level of participation in such programs and Franchisee will bear the cost.

10. TECHNOLOGY SYSTEMS AND WEBSITE

10.1. Point of Sale System. Franchisee, at its expense, must purchase and use a computerized cash collection and data processing system (the "POS System") that meets the standards and specifications provided by Franchisor from time to time in the Operations Manual or otherwise. Franchisee must enter all sales and other information Franchisor requires in the POS System. Franchisor may periodically require Franchisee, at its expense, to upgrade or update the POS System to remain in compliance with the standards and specifications required by Franchisor. Franchisee, at its expense, must maintain the POS System in good working order and connected to any telephone system or computer network that Franchisor requires. Franchisor may require Franchisee, at its expense, to configure and connect the POS System to Franchisor's systems to provide Franchisor with continuous real-time access to all information and data stored on the POS System. Franchisor may require Franchisee to pay Franchisor or its designated third parties reasonable fees to support and upgrade the POS System and a reasonable fee to Franchisor or its designated third party for polling or collecting data from the POS System. In addition to the POS System, Franchisee, at its expense, must equip the Bakery with the computer hardware and software that Franchisor specifies periodically and maintain access to the Internet or other computer network(s) that Franchisor specifies. In addition, Franchisee, at its expense, must also apply for and maintain other credit card, debit card or other non-cash payment systems that Franchisor periodically requires. Franchisor may require Franchisee to maintain support service contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the POS System, computer hardware and software, and credit card, debit card or other non-cash payment systems. Franchisor shall have the right to designate the vendor(s) for such support service contracts and maintenance service contracts.

10.2. Website. Franchisor currently operates a website related to the CINNAHOLIC® System at www.cinnaholic.com (the "Website"). Franchisor shall have the right to designate a successor Website. Subject to the terms of this Agreement, during the term hereof, Franchisor will endeavor to make available to Franchisee a sub-page on the Website that will be located at a sub-domain of the Website to be specified by Franchisor (the "Subpage"). Franchisee will be permitted to upload content onto the Subpage solely to promote, and provide customers information related to, the Bakery operated by Franchisee. Franchisee shall only upload content onto the Subpage in accordance with terms of this Agreement as well as any guidelines, directives or specifications (collectively, "Subpage Standards") in the Operations Manual. Franchisee understands and agrees that the Subpage may not contain content which references any other Bakery other than the Bakery operated by Franchisee. Franchisee will not upload, publish, display, or otherwise include or use any content on the Subpage without receiving the prior written approval of Franchisor. Accordingly, once the initial content of the Subpage is approved by Franchisor, Franchisee must submit any changes to such content to Franchisor for its prior written approval.

Franchisor's review and approval of the Subpage content shall not be construed as Franchisor's approval, recommendation or endorsement of Franchisee or a representation or warranty by Franchisor that such content is accurate, complete, truthful or correct. Franchisee acknowledges and understands that the registration for the Website domain name is and shall be maintained exclusively in the name of Franchisor or its designee. Franchisee acknowledges Franchisor's or its designee's exclusive right, title and interest in and to the domain name for the Website and further acknowledges that nothing herein shall give it any right, title or interest in such domain name. Franchisee will not, at any time, challenge Franchisor's or its designee's ownership of the Website domain name, challenge the validity of the Website domain name, or impair any right, title or interest of Franchisor or its designee in the Website domain name. Franchisee will assist Franchisor in preserving and protecting Franchisor's or its designee's rights in and to the Website domain name.

Franchisee further acknowledges and agrees that Franchisor may, at any time in its sole discretion, cease to make the Subpage available to Franchisee or the public. Franchisee agrees that Franchisor shall have no liability for failing to make the Subpage available to Franchisee or the public. ADDITIONALLY, TO THE MAXIMUM EXTENT PERMITTED BY LAW, FRANCHISOR HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES (WHETHER EXPRESS, IMPLIED OR STATUTORY) RELATED TO THE AVAILABILITY AND PERFORMANCE OF THE WEBSITE AND THE SUBPAGE, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, FRANCHISOR SHALL NOT BE LIABLE FOR ANY DIRECT OR INDIRECT DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY CONSEQUENTIAL, PUNITIVE OR INCIDENTAL DAMAGES OR DAMAGES FOR LOST PROFIT OR LOSS OF BUSINESS) RELATED TO THE USE, OPERATION, AVAILABILITY OR FAILURE OF THE WEBSITE OR SUBPAGE.

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are obligated to purchase and use a computerized Point of Sale (POS) system that meets Cinnaholic's standards and specifications. The franchisee bears the expense of the POS system, including any required upgrades or updates. Currently, Cinnaholic uses the Square POS System, which costs approximately $1,200, plus $500 for installation, with a monthly fee of $179. The franchisee must also maintain the POS system in good working order and connected to any required networks. Additionally, franchisees must apply for and maintain other credit card, debit card, or non-cash payment systems that Cinnaholic requires. Cinnaholic has the right to designate vendors for support and maintenance contracts related to these systems. The franchisee is responsible for the costs of these contracts.

Cinnaholic requires franchisees to enter all sales and other information into the POS system as required by Cinnaholic. The POS system must be configured to provide Cinnaholic with continuous, real-time access to all information and data stored within it. Cinnaholic may also require franchisees to pay reasonable fees to support and upgrade the POS system, as well as fees for data polling or collection. Franchisees are also required to equip their bakeries with any other computer hardware and software that Cinnaholic specifies and maintain internet access.

Cinnaholic will have access to the franchisee's bakery information and data through a portal, which the franchisee will use to maintain business information and metrics and generate reports. Cinnaholic may require the POS system to be accessible via modem or other means, allowing them to retrieve and compile information about the bakery. This includes independent access to sales information and data produced by both the portal and the POS system. Franchisees must also provide Cinnaholic with information on all delivery service applications being used, including login credentials. Cinnaholic currently charges a Monthly Technology Fee of $250 to cover the electronic loyalty and rewards program costs and integration with the POS system, which amount may change at any time.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.