What conditions must a Cinnabon franchisee meet for a non-control transfer of their franchise?

According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee seeking a non-control transfer of their franchise must meet several conditions. These stipulations ensure that the transfer process is conducted smoothly and that the new franchisee meets Cinnabon's standards. The franchisee must provide prior written notice to Cinnabon regarding the transfer. All outstanding financial obligations to Cinnabon must be settled before the transfer can proceed. Additionally, the franchisee must not be in default of the Franchise Agreement.

The proposed transferee must meet Cinnabon's qualifications, ensuring they are capable of operating the franchise successfully. Both the transferee and the franchisee must sign specific documents. The transferee is required to sign an assignment and guaranty, formally assuming the responsibilities and obligations of the Franchise Agreement. The franchisee, along with their guarantors and owners, must sign a general release, which releases Cinnabon from any claims related to the period before the transfer.

Even after the transfer, the original franchisee remains liable for any obligations incurred before the transfer date. Finally, the franchisee must pay Cinnabon a transfer fee to cover the administrative costs associated with processing the transfer. These conditions collectively aim to protect Cinnabon's interests and maintain the integrity of the franchise system during ownership changes. If the franchisee operates a Co-Branded Bakery, the Co-Branded Agreement or Co-Branded Franchise are transferred at the same time.