What approvals are needed for changes and modifications to the Cinnabon SRU that are not required by the Lessor?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
and Franchisor. Lessee shall be responsible for cleaning and maintaining the SRU. At all times, Lessee shall keep the SRU in good working order and repair. The expense of all ordinary maintenance and repair of the SRU due to normal wear and tear shall be borne by Lessor. The expense of extraordinary maintenance and repair
of the SRU due to a relocation of the SRU, damage to the Location or to the SRU, or to any other cause beyond the control of Lessor shall be borne by Lessee.
- b. Lessor is not obligated to maintain, repair, service, replace, operate or assure the operation of any device, system or property belonging to any third party that is associated with the SRU. Lessor is not responsible for any costs associated with the installation, setup and maintenance of the SRU, including, without limitatio
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, any changes or modifications to the Satellite Retail Unit (SRU) that are not required by the Lessor must be approved in advance by the Lessor. The franchisee (Lessee) is responsible for covering the costs associated with these modifications and for restoring the SRU to its original condition if necessary.
These modifications become part of the SRU, and the franchisee is not entitled to remove them or receive compensation for them. The Lessor retains ownership of the intellectual property rights to any such modifications, including related designs. This means that while a franchisee can suggest and implement changes, they do not own the rights to those changes, and Cinnabon's landlord does.
Furthermore, if the agreement is terminated before the fourth anniversary of the commencement date, the franchisee must reimburse the Lessor for the cost of restoring the SRU to its pre-modified condition. The FDD indicates that the current cost estimate for modification, restoration, and/or build-out is a specified amount, but that amount is not included in this excerpt. This reimbursement is considered liquidated damages and not a penalty. This provision highlights the importance of carefully considering the financial implications of modifications and the length of the lease term.