What is the definition of 'Designated Bank Account' for Cinnabon franchisees regarding EFT payments?

According to Cinnabon's 2025 Franchise Disclosure Document, the Designated Bank Account is defined as the bank account the franchisee has on file with Cinnabon for Electronic Funds Transfer (EFT) payments required by the Franchise Agreement or the Manuals. This account is used for drafting payments of Comprehensive Support Fees. Cinnabon will draft these fees on behalf of the Company from this account one time per month on the same day that royalties and other fees are drafted. Payments will start on the Payment Date of the first full month following the Opening Date.

It is the franchisee's responsibility to ensure that sufficient funds are available in the Designated Bank Account to cover all Comprehensive Support Fees, as well as any other amounts drafted via EFT as outlined in the Franchise Agreement and the Manuals. If there are insufficient funds, Cinnabon reserves the right to charge the franchisee for any return costs incurred by their bank, as well as an administrative fee to cover the costs of addressing the nonpayment. This administrative fee is in addition to any interest that may be due on the unpaid amount.

This arrangement is fairly standard in franchising, as it allows for efficient and timely collection of fees. However, it places a significant responsibility on the Cinnabon franchisee to manage their account and ensure funds are always available to avoid penalties and potential defaults under the Franchise Agreement. Franchisees should carefully track their payment obligations and maintain open communication with Cinnabon regarding any potential issues with their Designated Bank Account.