What agreement regarding restrictive covenants and confidentiality obligations must all Cinnabon Owners sign?

According to the 2025 Cinnabon Franchise Disclosure Document, all Cinnabon owners must sign a Personal Covenants Agreement, which is Schedule B to the Franchise Agreement. This agreement ensures that owners are bound by the restrictive covenants and confidentiality obligations outlined by Cinnabon. Additionally, all persons affiliated with the franchisee are required to sign a confidentiality agreement to protect Cinnabon's Confidential Information and Trade Secrets, as detailed in Item 14 of the FDD. This dual requirement ensures comprehensive protection of Cinnabon's proprietary information and business practices.

The Personal Covenants Agreement specifically binds the owners to Section 15 of the Franchise Agreement, which covers Confidential Information and Restrictive Covenants. By signing this agreement, owners acknowledge that they have read and understand their obligations and agree to be personally bound by the obligations and covenants as if they were directly made to Cinnabon. This personal obligation is critical for Cinnabon to ensure that all individuals with an equity interest in the franchise are committed to maintaining confidentiality and adhering to the restrictive covenants.

This requirement is a standard practice in franchising, as franchisors need to protect their trade secrets, customer relationships, and overall brand integrity. The agreement reinforces that the restrictive covenants and confidentiality obligations are fair, reasonable, and will not deprive the owner of their livelihood, indicating a balanced approach to protecting Cinnabon's interests while allowing the franchisee to operate their business. Prospective franchisees should carefully review Schedule B and Section 15 of the Franchise Agreement to fully understand the scope of these obligations before investing in a Cinnabon franchise.