Are the audited financial statements of GoTo Systems, Cinnabon's parent company, included as Exhibit A to the Disclosure Document?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit A to this Disclosure Document are the audited financial statements of GoTo Systems, our parent company, which include the consolidated balance sheets as of December 29, 2024 and December 31, 2023 and the related consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022. GoTo Systems guarantees the performance of our obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A.
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 29, 2024 and December 31, 2023. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — Financial Statements (FDD page 113)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the audited financial statements of GoTo Systems, the parent company of Cinnabon Franchisor SPV LLC, are included as Exhibit A. These statements include consolidated balance sheets as of December 29, 2024, and December 31, 2023, along with consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022. GoTo Systems also provides a guarantee of Cinnabon's obligations under the Franchise Agreement, which is also attached as Exhibit A.
In addition to GoTo Systems' financial statements, the audited financial statements of GoTo Foods as of and for the fiscal years December 29, 2024, and December 31, 2023, are also included as Exhibit A. However, the FDD states that these statements are for disclosure purposes only, as GoTo Foods is not a party to the Franchise Agreement and does not guarantee Cinnabon's obligations.
For a prospective Cinnabon franchisee, this means they can review the financial health of both the parent company (GoTo Systems) and GoTo Foods. While GoTo Foods' financials are provided for informational purposes, the financial stability of GoTo Systems is particularly important because it guarantees Cinnabon's performance under the Franchise Agreement. Reviewing these statements can help a franchisee assess the financial strength and stability of the entities behind the Cinnabon franchise.