What is the duration of the Option Period that Cinnabon has to purchase the Interest in a Cinnabon franchise?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you receive and want to accept a bona fide written offer from a third party to purchase the Franchised Business or substantially all the interests in you (collectively, the "Interest"), you must give us: (i) prompt written notice of the offer, stating the name and address of the prospective purchaser and the price and terms of the offer; and (ii) copies of all written documents and other information reasonably related to the offer provided by or to the prospective purchaser.
For 30 days after we receive the information required by this Section (the "Option Period"), we will have the option to purchase the Interest on the same terms as the third party offers; provided, however, if any portion of the consideration the thirdparty offers is other than cash, we will have the option of substituting the equivalent cash value.
If you comply with this Section 16.8 and we do not exercise our right of first refusal within the Option Period, you may, within 30 days after the expiration of the Option Period, sell, assign, and transfer the Interest to the third party specified in your notice in accordance with the terms and conditions of this Section 16.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, if a franchisee receives a legitimate offer from a third party to purchase the Franchised Business or their interests in it, the franchisee must promptly notify Cinnabon in writing. This notice must include the prospective purchaser's name and address, as well as the offer's price and terms, along with all related documents.
Following this notification, Cinnabon has an "Option Period" of 30 days to decide whether to purchase the franchisee's interest on the same terms as the third-party offer. However, if the third-party offer includes consideration other than cash, Cinnabon has the option to substitute the equivalent cash value.
If Cinnabon does not exercise its right of first refusal within this 30-day Option Period, the franchisee has 30 days after the Option Period expires to sell, assign, and transfer the interest to the specified third party, in accordance with the terms and conditions outlined in the agreement.