factual

What is the deadline for starting construction of a Cinnabon franchise after the Effective Date?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

Construction Start Deadline (Section 6.5.B.) Within 270 days after the Effective Date
Opening Deadline (Section 6.5.C.) Within 360 days after the Effective Date

EVENT COMPLETION DEADLINE
Site Approval Deadline (Section 6.5.A.) Within 60 days after the Effective Date
Construction Start Deadline (Section 6.5.B.) Within 90 days after the Effective Date
Opening Deadline (Section 6.5.C.) Within 180 days after the Effective Date

Source: Item 23 — Receipts (FDD pages 114–399)

What This Means (2025 FDD)

According to Cinnabon's 2025 Franchise Disclosure Document, the deadline for beginning construction and equipping the franchised business is dependent on which table is applicable. One table states that construction must begin within 270 days after the Effective Date. Another table states that construction must begin within 90 days after the Effective Date.

These deadlines are important for prospective franchisees as they dictate the timeframe within which they must secure a location, finalize plans, and commence construction. Failure to meet these deadlines can result in penalties, including potential termination of the Franchise Agreement. Cinnabon does allow for requesting an extension before the deadline, but the franchisor has the right to require a $2,500 extension fee and a signed general release.

It is important to note that the specific table applicable to a franchisee may depend on factors not explicitly detailed in the provided excerpts, such as the location of the franchise or specific agreements made with the franchisor. Prospective franchisees should clarify with Cinnabon which deadline applies to their specific situation to avoid any misunderstandings or potential breaches of contract.

Understanding these deadlines and the potential consequences of missing them is crucial for any prospective Cinnabon franchisee to ensure a smooth and successful launch of their business.

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.