How are disputes related to the Cinnabon franchise resolved?

According to the 2025 Cinnabon Franchise Disclosure Document, dispute resolution is primarily addressed through arbitration or mediation. For disputes arising under the Franchise Agreement, Section 19.1 dictates that most disputes must be resolved through arbitration. The choice of forum, subject to state law, requires that arbitration or lawsuits must occur in the metropolitan area of the district court where Cinnabon's principal place of business is located, which is currently Georgia. Georgia law governs disputes, except those related to non-competition covenants, which are governed by the laws of the state where the Cinnabon bakery is located.

For disputes related to the Satellite Retail Unit (SRU) Lease Agreement, Section 19 specifies that most disputes must be resolved through arbitration. The venue for suits is limited to Fulton County, Georgia, the Northern District of Georgia, or any other court where Cinnabon's principal place of business is located. The SRU Lease Agreement is governed by Georgia law, as stated in Section 20.

Prospective franchisees should be aware that these dispute resolution mechanisms may limit their ability to pursue legal action in their preferred location or under their local state laws, potentially increasing costs and complexity if a dispute arises. Arbitration, while often quicker and less expensive than traditional litigation, may also have limitations on discovery and appeal rights. Franchisees should consult with legal counsel to fully understand the implications of these provisions.