Does Cinnabon's consent to a transfer waive any claims Cinnabon has against the transferor?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Our consent to a Transfer does not constitute a waiver of any claims that we have against the transferor, nor is it a waiver of our right to demand exact compliance with the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon's consent to a transfer does not constitute a waiver of any claims that they have against the transferor. Additionally, it 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 the transfer of a franchise to a new owner, they still retain all rights to pursue any existing claims against the original franchisee (the transferor). This could include claims related to unpaid fees, breaches of contract, or any other issues that arose during the transferor's time as a franchisee.
For a prospective Cinnabon franchisee, this clause highlights the importance of fulfilling all obligations and adhering strictly to the Franchise Agreement. If a franchisee is considering selling their franchise, they should ensure they are in full compliance with the agreement to avoid potential legal issues even after the transfer is completed. This provision is fairly standard in franchise agreements, as it protects the franchisor's interests and ensures ongoing compliance with the franchise system's standards.