What is the deadline for transferring my Cinnabon franchise rights and interests after my death or permanent incapacity?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| o. You must comply with our right of first refusal. p. If you operate a Co-Branded Bakery, the Co-Branded Agreement or Co-Branded Franchise are transferred at the same time. | ||
| FA: 16.4 (non-control transfers) | a. You give us prior written notice of the transfer. b. You pay all sums owed. c. You are not in default d. Transferee meets qualifications e. Transferee signs assignment and guaranty f. You and your guarantors and owners sign a general release. g. You remain liable for pre-Transfer obligations. h.You pay us a Transfer Fee. | |
| FA: 16.5 (related party transfers) | a. You give us prior written notice of the transfer. b. You are not in default c. Transferee meets qualifications d. Transferee assumes in writing the Franchise Agreement and the guaranty. e. You may not be in default under the Franchise Agreement. f. You pay us a Transfer Fee. g. You and your guarantors and owners must sign a general release and remain liable for pre-Transfer obligations | |
| n. Our right of first refusal to acquire your business | FA: 16.8 | We can match any offer for your Bakery or substantially all interest in your entity. |
| ES: 20.Q. | Above not applicable for an Express Bakery. | |
| o. Our option to | FA: 18.4 | We may purchase your Goods related to the Bakery at the fair |
| purchase your | market value (exclusive of good will) and may purchase your | |
| business | Accepted Location if you own it or your interest in any lease. | |
| ES: 20.U. | Above not applicable for an Express Bakery. | |
| p. Your death or disability | FA: 16.6 | Upon 180 days from your death or permanent incapacity you must transfer all rights and interests to buyer that complies with Transfer provisions, except no Transfer Fee will be due. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 93–100)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, in the event of a franchisee's death or permanent incapacity, the rights and interests must be transferred to a buyer within 180 days. The buyer must comply with all standard transfer provisions outlined in the franchise agreement. A notable exception to the standard transfer requirements is that no transfer fee will be due in the event of death or permanent incapacity.
This provision ensures that the Cinnabon franchise can continue operating under new ownership without undue delay. The 180-day timeframe provides a reasonable period for the deceased's estate or the incapacitated franchisee's representatives to find a qualified buyer and complete the transfer process. By waiving the transfer fee, Cinnabon alleviates some of the financial burden associated with transferring the franchise in these difficult circumstances.
It is important to note that while the transfer fee is waived, all other transfer provisions still apply. This means the buyer must meet Cinnabon's qualifications, agree to the terms of the franchise agreement, and receive Cinnabon's approval for the transfer. This protects Cinnabon's interests by ensuring that any new franchisee meets their standards and is capable of operating the franchise successfully. Prospective franchisees should carefully review the full transfer provisions in the franchise agreement to understand all requirements and obligations.