What is the cure period for a Cinnabon franchisee to comply with all Laws, and what is the exception for a bona fide dispute?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. 24 hours after we send you a notice of default, you fail to cure a default related to complying fully with all Laws, unless there is a bona fide dispute as to the violation or legality of a Law and you promptly resort to a court or other appropriate forum having jurisdiction to contest the violation or illegality.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee has 24 hours to cure a default related to complying with all Laws after receiving a notice of default from Cinnabon. However, there is an exception to this rule.
If the franchisee has a bona fide dispute regarding the violation or legality of a Law, they are not required to cure the default within the 24-hour period. Instead, the franchisee must promptly resort to a court or other appropriate forum with jurisdiction to contest the violation or illegality. This means the franchisee must take immediate action to challenge the alleged violation through the legal system.
This provision protects Cinnabon franchisees from immediate termination if they have a legitimate disagreement over whether they are violating a law. However, it also places the burden on the franchisee to quickly initiate legal proceedings to resolve the dispute. Failure to do so could result in termination of the franchise agreement after the 24-hour period.