Under what conditions might Cinnaholic require franchisees to become members of a purchasing and/or distribution cooperative/association/program?

According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic may require franchisees to become members of purchasing or distribution cooperatives, associations, or programs in the future. Currently, there are no purchasing or distribution cooperatives within the Cinnaholic franchise system.

If Cinnaholic decides to implement such a program, they may require franchisees to (i) become a member of any purchasing and/or distribution cooperative(s)/association(s)/program(s) designated by them and/or established by them for the Cinnaholic franchise system, (ii) remain a member in good standing of the purchasing and/or distribution cooperative(s)/association(s)/program(s), and (iii) pay all membership dues or fees on purchases that are assessed by the purchasing and/or cooperative(s)/association(s)/program(s).

This means that a Cinnaholic franchisee could be mandated to join a specific purchasing group, maintain active membership, and pay any associated dues or fees. This could impact the franchisee's operating costs and potentially limit their flexibility in sourcing products, as they would need to adhere to the cooperative's purchasing guidelines and fee structure. Franchisees should inquire about the potential costs and benefits associated with such programs.