Where must arbitration or lawsuits be conducted for Cinnabon disputes?

According to Cinnabon's 2025 Franchise Disclosure Document, disputes arising from the franchise agreement will generally be resolved through arbitration. The FDD outlines the specific venue for these legal proceedings. For standard franchise agreements, arbitration or lawsuits must occur in the metropolitan area of the district court where Cinnabon's principal place of business is located, which is currently in Georgia. This applies to disputes arising from the Franchise Agreement itself.

However, the SRU (Small Restaurant Unit) Lease Agreement has a different stipulation. According to the SRU Lease Agreement, suits must be filed in Fulton County, Georgia, the Northern District of Georgia, or any other court where Cinnabon's principal place of business is located. This means that if a dispute arises specifically from the SRU Lease Agreement, the venue is more precisely defined within Georgia.

It is important for prospective franchisees to understand these venue requirements, as they dictate where legal proceedings must take place. This could involve travel and associated costs if the franchisee is not located in Georgia. Franchisees should also be aware that the choice of law for disputes varies; Georgia law generally applies, except for disputes related to non-competition covenants, which are governed by the laws of the state where the Cinnabon bakery is located. Therefore, franchisees should carefully review both the Franchise Agreement and the SRU Lease Agreement to fully understand their rights and obligations regarding dispute resolution.