What documentation regarding the lease agreement must a Cinnabon franchisee provide to the Lessor upon execution of the SRU agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessee must provide Lessor with the following items:
- a. Lease Agreement. A copy of the signed Lease Agreement or a letter of approval from the Landlord for the operation of the SRU for a minimum term of two (2) months shall be delivered the Lessor upon execution of this Agreement. Lessor does not guarantee that an SRU will be available for the same term as the Lease Agreement. Lessee understands that due to the limited number of SRUs, Lessor cannot guarantee that the SRU will be delivered upon the commencement date of the Lease Agreement. Lessor reserves the right to terminate this Agreement and recover the SRU regardless of any remaining term(s) of the Lease Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee leasing a Satellite Retail Unit (SRU) must provide the Lessor with specific documentation related to their lease agreement. Upon execution of the SRU agreement, the franchisee is required to deliver either a copy of the signed Lease Agreement or a letter of approval from the Landlord. This letter should confirm the approval for the operation of the SRU for a minimum term of two months.
This requirement ensures that the Cinnabon franchisee has secured the necessary permissions from the landlord to operate the SRU at the designated location. It also verifies that the lease term is sufficient to accommodate the SRU operation, although Cinnabon does not guarantee the SRU will be available for the same term as the Lease Agreement. The franchisor also maintains the right to terminate the SRU agreement and recover the unit, regardless of any remaining terms in the Lease Agreement.
It is important for prospective Cinnabon franchisees to understand that securing appropriate lease terms and documentation is a prerequisite for SRU operation. Due to the limited number of SRUs, Cinnabon cannot guarantee delivery upon the commencement date of the Lease Agreement. This means franchisees need to align their lease negotiations with these requirements and be aware of the potential for termination of the SRU agreement, even if the lease is still active. Franchisees should clarify with Cinnabon the process and criteria for SRU allocation and the implications of potential delays or terminations related to the SRU agreement.