factual

Is a copy of the guaranty of GoTo Systems attached as an exhibit to the Cinnabon Disclosure Document?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

Attached as Exhibit A to this Disclosure Document are the audited financial statements of GoTo Systems, our parent company, which include the consolidated balance sheets as of December 29, 2024 and December 31, 2023 and the related consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022. GoTo Systems guarantees the performance of our obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A.

Source: Item 21 — Financial Statements (FDD page 113)

What This Means (2025 FDD)

According to the 2025 Cinnabon Franchise Disclosure Document, GoTo Systems, the parent company, guarantees Cinnabon's obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is included as Exhibit A to the Disclosure Document.

This guaranty is significant for prospective Cinnabon franchisees because it provides an added layer of financial security. Should Cinnabon, as the franchisor, fail to meet its obligations under the Franchise Agreement, GoTo Systems, as the guarantor, would be responsible for fulfilling those obligations. This reduces the risk to the franchisee, as the parent company's financial strength backs the franchise agreement.

Exhibit A to the Cinnabon Disclosure Document also includes the audited financial statements of GoTo Systems, offering further insight into the financial stability of the guarantor. Reviewing these financial statements is crucial for a prospective franchisee to assess the ability of GoTo Systems to uphold its guarantee. The financial statements include consolidated balance sheets as of December 29, 2024, and December 31, 2023, along with related statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.