What is considered an 'eligible franchise' for the purpose of Cinnabon's Item 19 financial performance representation?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
This Item 19 presents information about the financial performance during Fiscal Year 2024 (the fiscal year ended December 29, 2024) of certain Enclosed Mall Franchises, Convenience
Franchises, and Auntie Anne's Co-Branded Franchises that were eligible franchises in Fiscal Year 2024. An "Enclosed Mall Franchise" is a franchised Full Bakery that is located in an enclosed mall. A "Convenience Franchise" is a franchised Full Bakery that is located in a travel plaza, travel center, or convenience store. An "Auntie Anne's Co-Branded Franchise" is a franchised Auntie Anne's Co-Branded Bakery. An "eligible franchise" is a franchise that reported sales in all 52 weeks of Fiscal Year 2024.
This Item 19 does not include data related to (i) franchised Full Bakeries that are located in Traditional Locations or Non-Traditional Locations other than the Enclosed Mall Franchises, Convenience Franchises, and Auntie Anne's Co-Branded Franchises represented in these Tables; (ii) Express Bakeries; (iii) Concession Bakeries; (iv) Co-Branded Franchises (other than the Auntie Anne's Co-Branded Franchises represented in Table 3); (v) affiliate-owned Bakeries; and (v) Full Bakeries that were not eligible franchises in Fiscal Year 2024. The financial performance and operations of these excluded Bakeries can vary significantly from the performance and operations of the Bakeries represented in this Item 19.
Source: Item 19 — Financial Performance Representations (FDD pages 100–104)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, an 'eligible franchise' for the purpose of Item 19 financial performance representation is defined as a franchise that reported sales in all 52 weeks of Fiscal Year 2024, which ended on December 29, 2024. This definition is important because the financial performance data presented in Item 19 is based only on the performance of these 'eligible' franchises.
Cinnabon's Item 19 includes financial performance data from Enclosed Mall Franchises, Convenience Franchises, and Auntie Anne's Co-Branded Franchises. However, the Item 19 specifically excludes data from other types of locations such as Traditional Locations, Non-Traditional Locations (other than Enclosed Mall Franchises, Convenience Franchises and Auntie Anne's Co-Branded Franchises), Express Bakeries, Concession Bakeries, Co-Branded Franchises (other than Auntie Anne's Co-Branded Franchises), affiliate-owned Bakeries, and Full Bakeries that were not eligible franchises in Fiscal Year 2024.
This means that if a Cinnabon franchise did not operate and report sales for all 52 weeks of the fiscal year, its financial data is excluded from the performance representations in Item 19. This could be due to various reasons, such as the franchise opening mid-year, experiencing temporary closures, or not consistently reporting sales data. Prospective franchisees should understand this eligibility criteria when reviewing the financial performance data, as their individual results may vary, and there is no assurance they will achieve similar sales or earnings.