factual

What California laws are recognized in the Cinnabon Disclosure Document addendum for California?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

In recognition of the requirements of the California Franchise Investment Law, California Corporations Code §§ 31000 through 31516, and the California Franchise Relations Act, California Business and Professions Code §§ 20000 through 20043, the Disclosure Document for Cinnabon Franchisor SPV LLC in connection with the offer and sale of franchises for use in the State of California is amended to including the following:

1. ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION


2. DISCLOSURES REGARDING THE CALIFORNIA FAST FOOD ACT (CALIFORNIA ASSEMBLY BILL 1228)

  • A. ITEM 1: To the extent it is applicable, you must comply with California Assembly Bill 1228, codified at Cal. Lab. Code §§ 1474-1475 (the "Fast Food Act"), which may set health, safety, and employment standards related to your employees, including standards on minimum wages, working hours, and working conditions.
  • B. ITEMS 5, 6, AND 11: We currently do not provide any training or assistance related to, or charge any initial or ongoing fees related to, the development or implementation of

any standards, policies, or procedures that may be required under the Fast Food Act*.* It is solely your responsibility to determine whether the Fast Food Act applies to your franchise and, to the extent it does apply, to comply with the Fast Food Act when developing and constructing your restaurant, operating your franchise, and training and supervising your employees.

C. ITEM 7: The Additional Funds estimate takes into account any increased costs that you may incur related to complying with the Fast Food Act (such as increased wages), based on the Fast Food Act standards that are in effect as of the date of this Disclosure Document.

3. ADDITIONAL DISCLOSURES

  • A. Neither we nor any person in Item 2 of the Disclosure Document is subject to any currently-effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling us or that person from membership in these associations or exchanges.
  • B. Section 31125 of the California Corporations Code requires us to give you a Disclosure Document in a form and containing all information as the Commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
  • C. The California franchise investment law requires that we deliver a copy of all proposed agreements related to the sale of the franchise, together with the Disclosure Document.
  • D. Regarding our website, www.cinnabon.com, please note the following:

Source: Item 23 — Receipts (FDD pages 114–399)

What This Means (2025 FDD)

According to Cinnabon's 2025 Franchise Disclosure Document, the California addendum recognizes several California laws. Specifically, the addendum acknowledges the requirements of the California Franchise Investment Law, which is California Corporations Code §§ 31000 through 31516. It also recognizes the California Franchise Relations Act, outlined in California Business and Professions Code §§ 20000 through 20043. These laws govern the offer and sale of franchises within the state of California.

Additionally, the addendum addresses California Assembly Bill 1228, also known as the Fast Food Act, codified at Cal. Lab. Code §§ 1474-1475. This act potentially sets health, safety, and employment standards, including those related to minimum wages, working hours, and working conditions for employees. The FDD clarifies that Cinnabon does not provide training or assistance related to compliance with the Fast Food Act, making it the franchisee's responsibility to adhere to these regulations.

Furthermore, Section 31125 of the California Corporations Code is mentioned, requiring Cinnabon to provide a disclosure document before any solicitation of a proposed material modification of an existing franchise. The California franchise investment law also mandates that Cinnabon deliver copies of all proposed agreements related to the sale of the franchise, along with the Disclosure Document, ensuring transparency and informed decision-making for prospective franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.