Does Cinnabon's consent to a transfer waive any claims against the transferor?

According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon's consent to a transfer of a franchise does not constitute a waiver of any claims that Cinnabon has against the transferor. Additionally, Cinnabon's consent is not a waiver of their right to demand exact compliance with the terms of the Franchise Agreement. This means that even if Cinnabon approves a franchise transfer, they still retain all rights to pursue any existing claims against the original franchisee (the transferor) and can still enforce all terms of the agreement.

This provision protects Cinnabon's interests by ensuring that they do not lose any legal recourse against a franchisee simply by allowing the franchise to be transferred to someone else. It also reinforces the importance of adhering to the Franchise Agreement, as Cinnabon can still demand strict compliance even after a transfer.

For a prospective franchisee, this highlights the importance of fulfilling all obligations under the Franchise Agreement before attempting to transfer the franchise. Any outstanding debts, unresolved issues, or non-compliance with the agreement could still be pursued by Cinnabon even after the transfer is completed. This clause is fairly standard in franchise agreements, as franchisors typically want to maintain their rights and not be forced to waive potential claims simply to facilitate a transfer.