What is the amount of the security deposit required for a Cinnabon SRU, and when is it paid?
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 Cinnabon's 2025 Franchise Disclosure Document, a franchisee leasing a Satellite Retail Unit (SRU) is required to pay a security deposit. The security deposit is $1,000 and is non-interest bearing. This deposit must be paid to the Lessor upon the execution of the SRU lease agreement.
The security deposit is held by the Lessor to cover any potential costs incurred during the lease term. Specifically, the FDD states that the security deposit can be used to cover any remaining sums due under the agreement, return shipping costs, and repair or replacement costs for any lost or damaged items.
After the SRU is returned to the Lessor, it will be inspected. The security deposit, less any deductions for the aforementioned costs, will be returned to the franchisee within 30 days of the inspection and completion of necessary repairs. If the cost of repairs exceeds the security deposit, the franchisee is responsible for paying the difference to the Lessor.