What is the deadline for a Cinnabon franchisee to furnish a profit and loss statement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before February 1st of each year (or such other date specified by us in the Manuals or otherwise in writing, which may be by email or other electronic communications), you must furnish to us a statement of the profit and loss of the Franchised
Business for the last fiscal year and a balance sheet as of the end of the last fiscal year, prepared in accordance with our requirements and certified by you to be true and correct. We have the right to demand audited financial statements if a financial-related default has occurred under this Agreement within the last calendar year.
- 14.5 Tax Returns.
No later than 90 days following our request, you must furnish to us exact copies of all tax returns, including federal, state, and any local income tax returns relating to the Franchised Business or you or your Entity.
- 14.6 Financial Records.
You must accurately and completely record all revenues the Franchised Business receives or is entitled to receive.
You must keep and maintain accurate and complete books, records, tax returns, and all business, personnel, financial, and operating records related to the Franchised Business, including related supporting material, such as bank statements, POS tapes/records, cash receipts and credit and charge records, for at least 3 years.
These financial records may not be commingled with records for other businesses.
If you have commingled your franchised records for various businesses, we have the right to review and audit the records for all commingled businesses.
- 14.7 Initial Investment Statements.
You must submit to us, using the forms that we provide to you, complete and accurate statements of (i) the costs that you incurred developing the Franchised Business prior to the Opening Date, which shall be due to us within 30 calendar days after the Opening Date and (ii) the costs you incur during the first 90 days of operating your Franchised Business, which shall be due to us within 120 calendar days after the Opening Date.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are required to submit a profit and loss statement for their franchised business to Cinnabon on or before February 1st of each year. This statement should cover the last fiscal year and include a balance sheet as of the end of that fiscal year. The financial statements must be prepared according to Cinnabon's requirements and certified by the franchisee as true and correct.
Cinnabon retains the right to demand audited financial statements from a franchisee if a financial-related default has occurred under the Franchise Agreement within the last calendar year. This provision ensures that Cinnabon can closely monitor the financial health of its franchisees, especially those who have previously experienced financial difficulties.
In addition to the profit and loss statement, Cinnabon franchisees must also furnish exact copies of all tax returns, including federal, state, and local income tax returns, no later than 90 days following Cinnabon's request. Franchisees must also maintain accurate and complete financial records for at least three years, and these records must not be commingled with those of other businesses. Franchisees must also submit statements of initial costs incurred in developing and operating the franchised business.