Does the death of a Guarantor terminate the Cinnabon Guaranty agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Guaranty will bind Guarantor and Guarantor's respective heirs and personal representatives and will benefit Franchisor and its respective successors and assigns. Guarantor will not assign this Guaranty without Franchisor's prior written consent. Guarantor's death will not terminate this Guaranty and the same will be enforceable against Guarantor's estate. This Guaranty will continue in full force and effect and remain enforceable against each Guarantor if Franchisee or any owner of Franchisee transfers any interest in the Franchise Agreement or Franchisee.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the death of a guarantor does not terminate the Guaranty agreement. The agreement remains enforceable against the guarantor's estate. This means that the guarantor's heirs and personal representatives will be bound by the terms of the guaranty, ensuring that Cinnabon's financial interests are protected even after the guarantor's death.
This provision is designed to provide Cinnabon with continuous financial security. The estate of the deceased guarantor remains responsible for the obligations outlined in the Guaranty agreement. This includes the franchisee's payment and performance obligations under the Franchise Agreement.
For a prospective Cinnabon franchisee, this clause highlights the importance of understanding the long-term implications of the Guaranty. Individuals considering becoming a guarantor should be aware that their estate will be responsible for the obligations even after their death. It is advisable to seek legal counsel to fully understand the implications of this clause and to discuss estate planning strategies to address these obligations.