According to the Cinnabon FDD, what is the 'Co-Branded Franchise' operated in conjunction with?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Section 1.1 (Grant of Franchise) is amended to add the following sentence:
The Franchised Business must be operated at the Accepted Location in conjunction with a [Auntie Anne's® ] [Carvel® ] franchised business (the "Co-Branded Franchise") that is operated by you in accordance with a [Auntie Anne's® ] [Carvel® ] franchise agreement (the "Co-Branded Agreement") between you and [Auntie Anne's Franchisor SPV LLC] [Carvel Franchisor SPV LLC] (the "Co-Branded Franchisor"). The Franchised Business and the Co-Branded Franchise shall be co-branded using the Marks and the trademarks licensed to you by the Co-Branded Franchisor.
B. Section 1.4 (Owners of Equity) is amended to add the following sentence:
You represent and warrant that the Franchisee and Owners under this Agreement are identical to, and throughout the Term will continue to be identical to, those under the Co-Branded Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a Cinnabon 'Co-Branded Franchise' must be operated in conjunction with either an Auntie Anne's or a Carvel franchised business. Specifically, the Cinnabon franchise must be operated at the same location as either an Auntie Anne's or Carvel franchise. The co-branded franchise will use trademarks licensed by both Cinnabon and either Auntie Anne's or Carvel. The franchise agreement for the co-branded location must be between the franchisee and either Auntie Anne's Franchisor SPV LLC or Carvel Franchisor SPV LLC, respectively.
This co-branding arrangement has several implications for prospective franchisees. The owners of the Cinnabon franchise must be identical to those of the co-branded Auntie Anne's or Carvel franchise. The franchisee must adhere to the most stringent duties and obligations set forth in both franchise agreements. The menu for the co-branded business may not include all items typically offered at a standard Cinnabon location and may feature unique items specific to the co-branded concept.
Furthermore, Cinnabon retains the right to communicate with the co-branded franchisor (either Auntie Anne's or Carvel) regarding any aspect of the franchisee's development or operation and to share copies of any default or termination notices. The franchisee must also transfer any interest in the Cinnabon franchise simultaneously with the transfer of the corresponding interest in the co-branded franchise. The franchisee will need to satisfy the transfer procedures and pay any applicable fees for both Cinnabon and the co-branded franchisor. The franchisee may use the same computer system to operate both the Cinnabon franchise and the co-branded franchise, and the co-branded franchisor may conduct inspections and audits of the location.
If the franchisee's co-branded agreement with either Auntie Anne's or Carvel terminates, expires, or if the franchisee ceases to operate the co-branded franchise for any reason, Cinnabon has the right to terminate the Cinnabon franchise agreement without providing an opportunity to cure the breach. This highlights the interdependence of the two franchises and the importance of maintaining both agreements in good standing. The royalty fee structure and advertising contributions are also coordinated between Cinnabon and the co-branded franchisor, with each party collecting fees based on the portion of net sales attributable to their respective brands.