According to the Cinnabon franchise agreement, where will arbitration proceedings be held?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Arbitration. Except as stated in Section 19.1.D. (Excepted Disputes) of this Agreement, all disputes between you, your affiliates, Owners, guarantors, and/or your or your affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Franchised Business, will be resolved by binding arbitration. The arbitration proceeding shall be conducted by one arbitrator and, except as this Section 19.1 otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association (the "AAA"). All arbitration proceedings will be held at AAA's offices or other suitable offices that we select in the metropolitan area in which our principal place of business is then located. The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, arbitration proceedings will be held at the American Arbitration Association's (AAA) offices or other suitable offices selected by Cinnabon in the metropolitan area where Cinnabon's principal place of business is located. The arbitrator does not have the authority to select a different hearing location. This means a franchisee may be required to travel to Cinnabon's headquarters location for arbitration, potentially incurring travel and lodging expenses.
This arbitration clause applies to all disputes relating to the Franchise Agreement, the relationship between the franchisee and Cinnabon, or the franchisee's franchised business, except for "Excepted Disputes". These include disputes related to the ownership or validity of Cinnabon's intellectual property, enforcement of Cinnabon's intellectual property rights or protection of its confidential information or trade secrets, or disputes related to the payment of sums the franchisee owes to Cinnabon or its affiliates.
It is important for prospective Cinnabon franchisees to understand that they are agreeing to resolve most disputes through binding arbitration, which is generally faster and less expensive than litigation but also has limited appeal rights. Franchisees should also be aware of the specific exceptions to the arbitration requirement, as these types of disputes may be litigated in a court of law. The FDD specifies that all matters relating to arbitration will be governed by the Federal Arbitration Act.