What must I do to operate an Auntie Annes Cinnabon Co-Branded Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- A Cinnabon Co-Branded Shop is a Full Shop where you produce and sell a range of Auntie Anne's products in conjunction with those products authorized to be sold under the Cinnabon® franchise system.
In order to operate a Cinnabon Co-Branded Shop, you must (i) purchase an Auntie Anne's® franchise from us, sign a Franchise Agreement with us, and sign the Co-Branded Shop Schedule, which is attached as Exhibit C to this Disclosure Document (the "Co-Branded Shop Schedule") and (ii) purchase a Cinnabon® franchise from Cinnabon and sign a Cinnabon® franchise agreement and co-branded schedule with Cinnabon.
The terms of the Cinnabon® franchise offering, franchise agreement, and related agreements that Cinnabon will require you to sign are disclosed in the Cinnabon® Disclosure Document, which you must obtain from Cinnabon.
We will not grant you the right to operate a Cinnabon Co-Branded Shop, unless Cinnabon agrees to offer you a Cinnabon® franchise and to permit the franchise to be operated at a co-branded location.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–24)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, operating a Cinnabon Co-Branded Shop requires a few key steps. First, you must purchase an Auntie Anne's franchise and sign the standard Franchise Agreement, along with the Co-Branded Shop Schedule. Second, you must separately purchase a Cinnabon franchise, signing their franchise agreement and co-branded schedule directly with Cinnabon. Essentially, you are entering into two separate franchise agreements with two different franchisors.
This co-branding arrangement is contingent on Cinnabon's approval. Auntie Annes will not grant you the right to operate a Cinnabon Co-Branded Shop unless Cinnabon agrees to offer you their franchise and permits it to operate at a co-branded location. This highlights the importance of coordinating with both Auntie Annes and Cinnabon during the franchise application process to ensure both franchisors are on board with the co-branding concept.
Prospective franchisees should obtain and carefully review the Cinnabon Disclosure Document to understand the terms of the Cinnabon franchise offering, franchise agreement, and related agreements. This includes understanding the fees, royalties, and operational requirements specific to the Cinnabon franchise, as these will be in addition to those required by Auntie Annes. Co-branding can offer benefits such as increased customer traffic and brand recognition, but it also adds complexity due to the need to comply with two separate franchise systems.