Under what conditions must a Cinnaholic franchisee submit a written request for supplier approval?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If (i) you wish to purchase any item from a supplier (manufacturer or distributor and service providers, such as food delivery services or applications) we have not previously approved or an item that does not comply with our standards and specifications and (ii) the item has not been designated by us to be exclusively supplied by a designated supplier(s), you must first submit to us a written request for approval. We will establish a procedure for submitting these requests. We will require the proposed supplier to provide us with certain financial and operational information and other information regarding the supplier and the items to be approved. In addition, the proposed supplier must permit our representatives to inspect its facilities (e.g. business offices and/or manufacturing facilities, as applicable). Before we approve a supplier, we will evaluate the economic terms of a possible relationship and ensure that the proposed supplier meets our requirements. We reserve the right, at our option, and at the proposed supplier's expense, to inspect or re-inspect the facilities, equipment, and raw materials of any supplier, at any time. The proposed supplier or you must pay, in advance, a fee not to exceed the reasonable cost of any evaluation, testing, and inspections we undertake. Within a reasonable time frame after we receive the completed request and after we complete any evaluation and inspection or testing, (approximately 45 days), we will notify you in writing of our approval or disapproval of the proposed supplier or item. Generally, we will respond to your requests for supplier approval within a reasonable time period not to exceed 90 days. We are not required to approve any supplier or item not meeting our standards and specifications. We may deny approval for any reason, including our determination to limit the number of approved suppliers. You must not use, offer for sale or sell any of the proposed supplier's products or any other product that does not meet our standards or specifications until you receive our written approval of the proposed supplier or item.
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, a franchisee must submit a written request for supplier approval under specific circumstances. If a franchisee wishes to purchase an item from a supplier that Cinnaholic has not previously approved, or if the item does not comply with Cinnaholic's standards and specifications, a written request is required. This applies to various suppliers, including manufacturers, distributors, and service providers such as food delivery services.
However, this requirement is conditional. The franchisee only needs to submit a request if the item in question has not been designated by Cinnaholic to be exclusively supplied by a designated supplier. This means that if Cinnaholic has already mandated a specific supplier for a particular item, the franchisee does not have the option to seek approval for an alternative supplier.
The approval process involves the franchisee submitting a written request, and Cinnaholic may require the proposed supplier to provide financial, operational, and other relevant information. Additionally, Cinnaholic's representatives must be permitted to inspect the supplier's facilities. The proposed supplier or the franchisee must also pay a fee to cover the costs of any evaluations, testing, or inspections that Cinnaholic undertakes. Cinnaholic aims to respond to these requests within approximately 45 days after receiving the completed request and finishing any evaluations, with a general response timeframe not exceeding 90 days. Cinnaholic retains the right to deny approval for any reason, including limiting the number of approved suppliers, and the franchisee cannot use the proposed supplier's products until written approval is received.