How does Cinnabon define a 'transfer' by a franchisee regarding ownership interest?

According to Cinnabon's 2025 Franchise Disclosure Document, a transfer by a franchisee is defined within the context of the SRU (presumably, Small Retail Unit) Lease Agreement. Specifically, any action that involves the sale, transfer, assignment, or any other means of conveying all or a portion of a franchisee's ownership interest is considered a transfer. This definition is important because it establishes the scope of what Cinnabon considers a change in ownership that requires their approval and adherence to specific conditions.

This definition is crucial for prospective franchisees as it clarifies that any change in ownership, whether it's a complete sale or a partial assignment of interest, falls under the transfer provisions outlined in the SRU Lease Agreement. This means that a franchisee cannot simply sell a portion of their business without Cinnabon's consent and compliance with the outlined procedures. This provision allows Cinnabon to maintain control over who operates their franchises and ensures that new owners meet their qualifications and standards.

It is important to note that while the SRU Lease Agreement defines what constitutes a transfer, the SRU Addendum does not contain any specific provisions related to the definition, approval, or conditions for transfer. This suggests that the SRU Lease Agreement is the primary document governing transfer-related matters for SRU locations. A prospective franchisee should carefully review both the SRU Lease Agreement and the Franchise Agreement to fully understand the requirements and restrictions associated with transferring ownership interest in a Cinnabon franchise.