What agreement controls the lease of an SRU to a Cinnabon franchisee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
sulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you and if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
We or our affiliate, in our or their sole discretion and subject to availability, may lease to qualified franchisees an SRU as an additional selling location within the mall, airport, enclosed building or other retail location where an existing Bakery is located. This lease is controlled by the terms of an SRU Lease Agreement between you and us or our affiliate. See Items 6 and 8.
We participate in the SBA's Franchise Directory. We may modify the Franchise Agreement, if necessary, to comply with SBA requirements for you to participate in certain SBA loan programs.
We may sell, assign, or discount to a third party any note, financing-related contract or other instrument you give to us.
ITEM 11
FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
As noted in Item 1, we have entered into a management agreement with GoTo Foods for it to provide certain support and services to Cinnabon franchisees. GoTo Foods may delegate certain of these responsibilities to CLLC, the previous franchisor of Cinnabon franchises, or other affiliates. However, we remain responsible for all of the support and services required under the Franchise Agreement.
Our Pre-Opening Obligations
Before you open your Bakery, we will fulfill the following obligations:
1. Site Selection Review. We will review the location you select for your Bakery and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it.
Source: Item 10 — Financing (FDD page 66)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the lease of a Satellite Retail Unit (SRU) to a franchisee is governed by the terms of the SRU Lease Agreement between the franchisee and Cinnabon or its affiliate. The opportunity to participate in the SRU Program is at Cinnabon's sole discretion, and franchisees must comply with the SRU Addendum and the SRU Lease Agreement.
The SRU Addendum and SRU Lease Agreement, including the rights to operate and lease the SRU, can be terminated by Cinnabon or its affiliate with just 48 hours' written notice. A franchisee can terminate the agreements by providing two weeks' written notice. However, if a franchisee terminates the SRU Addendum and SRU Lease Agreement within the first 12 months, they are responsible for rental payments through the entire 12-month period.
If a Cinnabon franchisee operates an SRU, they must purchase or lease the SRU and related equipment from Cinnabon's designated supplier, which may be Cinnabon itself or one of its affiliates. If leasing, the franchisee must execute the SRU Lease Agreement in the form designated by the supplier, pay any required initial and ongoing fees, and provide Cinnabon with an executed copy of the SRU Lease Agreement. The franchisee must also obtain Cinnabon's written approval for the design and any modifications to the SRU.