What is the amount of the security deposit required for a Cinnabon SRU, and is it interest-bearing?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
he SRU shall at all times be under and subject to the terms of the Franchise Agreement. In the event of a conflict between this Agreement and the Franchise Agreement, the terms of the Franchise Agreement shall govern.
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- Commencement Date. The commencement date of operations of the SRU and the rental commencement date ("Commencement Date") shall be no later than ten days after receipt of the SRU from Lessor or Lessor's designee.
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- Term. This Agreement shall be effective and binding from the date of execution and shall terminate upon the earlier of (i) the expiration or termination of the Lease Agreement; (ii) the expiration or termination of the Franchise Agreement and/or the SRU Addendum; or (iii) t
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, a franchisee leasing a Satellite Retail Unit (SRU) must pay a security deposit of $1,000 to the Lessor upon execution of the lease agreement. This security deposit is non-interest bearing, meaning the franchisee will not accrue any interest on this amount while it is held by the Lessor.
The security deposit serves to cover any sums due under the agreement, including return shipping costs, and repair or replacement costs for lost or damaged items. After the SRU is returned and inspected, the remaining deposit amount, less any deductions for the aforementioned costs, will be returned to the franchisee within 30 days.
If the cost of necessary repairs exceeds the security deposit, Cinnabon's Lessor reserves the right to charge the franchisee for the difference between the actual cost of repairs and the security deposit. This is a standard practice to protect the Lessor from potential damages to the SRU during the lease period.