What conditions must be met for a Cinnabon SRU to be relocated?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ocate the Accepted Location of the Franchised Business at your expense, if, prior to closing the Franchised Business, you submit a site acceptance request (in the form we provide to you) for your new Proposed Location and obtain our acceptance of the relocation to the Proposed Location. A relocation includes any change of
the location of the Franchised Business within a mall, facility, or building to a new location within the same mall, facility, or building. We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
- B. Relocation Conditions. If we approve, in our sole discretion, the relocation of the Franchised Business under this Section 5.5, you agree to comply with the following conditions:
- (i) the new location will be considered the "Accepted Location" as used in this Agreement;
- (ii) all Site Agreements you enter into to secure the new location must comply with Section 5.4 (Site Acquisition);
- (iii) you must make or cause to be made to the former Accepted Location such changes in the signs and interior and exterior of the former Accepted Location so as to effectively distinguish such location from any other Business;
- (iv) we may charge you a relocation fee equal to 10% of the then-current Initial Franchise Fee to cover costs and expenses incurred by us or our affiliates in connection with any such acceptance, evaluation, and relocation of the Franchised Business;
- (v) we may require you to pay an agreed minimum royalty to us during the period in which the Franchised Business is not in operation (if any); and
- (vi) we may require you to sign our then-current form of franchise agreemen
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, relocating a Satellite Retail Unit (SRU) requires Cinnabon's approval, which is at their sole discretion. To initiate a relocation, the franchisee must submit a site acceptance request for the new proposed location before closing the existing SRU. This request must be in the form provided by Cinnabon, and the relocation includes any change of location within the same mall, facility, or building.
Cinnabon is not obligated to approve any relocation. Approval is contingent on the franchisee being in full compliance with all terms and conditions of the Franchise Agreement and having sufficient funds to cover the relocation expenses and construct the new SRU according to Cinnabon's current design standards. The new location will then be considered the "Accepted Location" under the agreement, and all site agreements for the new location must adhere to the site acquisition guidelines outlined in the Franchise Agreement.
Additionally, the franchisee is responsible for altering the former location to effectively distinguish it from any other Cinnabon business. Instead of paying a relocation fee, the franchisee must reimburse Cinnabon for the services performed in conjunction with the relocation. This reimbursement covers the then-current daily training service fee plus any travel-related expenses incurred by Cinnabon.
These conditions ensure that any relocation maintains Cinnabon's brand standards and operational consistency, while also covering the franchisor's costs associated with facilitating the move. Franchisees should carefully consider these requirements and the potential expenses before deciding to relocate their SRU.