What are the conditions that a Cinnabon franchisee must meet to be granted a renewal term?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Grant of Renewal Term. We may, in our reasonable discretion, grant you one additional 20-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"). To obtain the Renewal Term, (i) at all times during the Term, you must have substantially and timely complied with each provision of this Agreement and any other agreements between you and us, our affiliates, or your landlord and you must not have any defaults in existence as of the expiration of the Initial Term, and (ii) you must request, in writing, no earlier than 12 months, but no later than six months before the expiration of the Initial Term, that we grant you a Renewal Term. We will then provide you with an Application for a Renewal Term (an "Application"), which you must complete and return to us within 10 days after we deliver it to you. We will evaluate your Application under substantially the same standards as we evaluate an application for a franchise submitted by a then-new franchisee.
B. Conditions for Renewal Term. If we approve your Application, you must:
- (i) Agree in writing before the Renewal Term begins that you will make the significant capital expenditures necessary to complete a Remodel (as defined in Section 12.6.B. (Remodel)) within six months after the Renewal Term begins.
- (ii) Sign and return our then-current form of franchise agreement (the "Renewal Agreement") within 30 days after we deliver it to you and pay a renewal fee equal to 20% of the amount of the then-current Initial Franchise Fee. You agree that the Renewal Agreement may contain terms that differ materially from this Agreement.
- (iii) Sign a general release in a form we prepare, releasing us and our parents, subsidiaries, and affiliates and the respective directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, successors, heirs and assigns of each of the foregoing (in their corporate and individual capacities) (collectively, the "Released Parties"), from all claims you may have against the Released Parties as of the date of the Renewal Agreement. Your Owners must also sign the general release required in the previous sentence. Released Parties is not intended to include suppliers or distributors to you that are not affiliated with us and are not acting as our agent.
- (iv) Secure the right from your landlord to continue operating at the Accepted Location for the remainder of the Renewal Term. Alternatively, we may require you to relocate your Franchised Business if we find that the Accepted Location does not meet our then-current standards at the time we consider your Application.
- C. No Automatic Right. You agree that this Agreement does not grant you any automatic rights to a Renewal Term and that we will not be obligated to offer you a Renewal Term. The sole basis for any extension of your franchise rights beyond the Initial Term is in this Section.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company may grant one additional 20-year renewal term at its discretion. To obtain a Renewal Term, the franchisee must have substantially and timely complied with all provisions of the Franchise Agreement and any other agreements with Cinnabon, its affiliates, or the landlord throughout the initial term. Additionally, the franchisee must not have any outstanding defaults at the time of the initial term's expiration.
To initiate the renewal process, the franchisee must request a Renewal Term in writing, no earlier than 12 months and no later than six months before the initial term expires. Cinnabon will then provide an Application for Renewal Term, which the franchisee must complete and return within 10 days. Cinnabon will evaluate the application using similar standards applied to new franchise applications.
If Cinnabon approves the renewal application, the franchisee must agree in writing to make the necessary capital expenditures to complete a remodel within six months after the Renewal Term begins. The franchisee must also sign the then-current form of franchise agreement (Renewal Agreement) within 30 days of receiving it and pay a renewal fee equal to 20% of the then-current Initial Franchise Fee. Additionally, the franchisee must sign a general release, which also must be signed by the franchisee's owners, releasing Cinnabon from any claims against them as of the date of the Renewal Agreement. The franchisee must also secure the right to continue operating at the current location for the renewal term, or relocate if the current location does not meet Cinnabon's standards at the time of the application review. Cinnabon does not grant any automatic rights to a renewal term and is not obligated to offer one.