Does Cinnabon disclose pending actions against a party if they are considered routine litigation incidental to the business?

According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon does not have to disclose pending actions against the franchisor, its predecessor, people identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark, if the pending actions are considered routine litigation incidental to the business. However, these actions must not be significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.

This means that Cinnabon is only required to disclose pending lawsuits or legal actions that are considered significant to the franchise system as a whole. Routine, smaller lawsuits that are a normal part of doing business do not need to be disclosed.

For a potential franchisee, this is important because it means that the FDD may not list every single legal issue Cinnabon is currently facing. It only includes the ones that could have a real impact on the franchisees or the financial stability of the Cinnabon system. If a franchisee is concerned about the legal history of Cinnabon, they should consider asking the franchisor directly about any pending litigation, regardless of whether it is disclosed in the FDD.