Can Cinnabon's company assign the Service Level Agreement to another entity without the franchisee's consent?

According to Cinnabon's 2025 Franchise Disclosure Document, the company can assign the Service Level Agreement to another entity without the franchisee's consent. Specifically, the FDD states that 'Company may assign this Agreement to any person or entity without Franchisee consent.' This means that Cinnabon LLC has the right to transfer its obligations and rights under the Service Level Agreement to another party without needing to obtain permission from the franchisee.

For a prospective Cinnabon franchisee, this clause provides both potential benefits and risks. On the one hand, it gives Cinnabon flexibility to optimize its operations by outsourcing or transferring the support services to a more capable provider. On the other hand, it means that the franchisee could be forced to work with a different service provider that they did not choose and may not prefer. The quality of support could change, and the franchisee has no direct control over this decision.

It is important for a potential Cinnabon franchisee to understand that the 'Agreement' referenced in this clause refers to the Service Level Agreement, which outlines the support Cinnabon provides for the point of sale (POS) system. Because the POS system is critical for day-to-day operations, any changes in the support structure could have a significant impact on the franchisee's business. Franchisees should carefully consider this lack of control when evaluating the franchise opportunity and discuss with existing franchisees their experiences with changes to the service provider.