What efforts must a Cinnabon franchisee make to include preferred lease terms in the Lease?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
(i) a provision which requires the landlord concurrently to provide us with a copy of any written notice of breach or default under the Lease sent to you, and which grants to us the right (but not the obligation) to cure any defaults under the Lease within a reasonable time (not to exceed 15 days for monetary defaults and 30 days for non-monetary defaults);
(ii) a provision that provides that upon the expiration or termination of this Agreement or upon your default under the Lease or under this Agreement, we will, without your or the landlord's further consent, have (a) a continuing right of entry into the Franchised Business, (b) the right to operate a Business at the Accepted Location, (c) the right, but not the obligation, to assume your interests under the existing terms, conditions and covenants of the Lease, and (d) should we assume your position under the Lease, the right to assign the Lease or sublet the premises to a third party which will operate a Business at the location;
(iii) a provision that provides that upon expiration or termination of the Lease, we will, without your or the landlord's further consent, have a continuing right of entry into the Franchised Business to remove Proprietary Products and any materials bearing the Marks;
(iv) a provision that provides that the Lease may not be modified or amended without our written consent which will not unreasonably be withheld, conditioned or delayed by us;
(v) a provision that allows you to offer or distribute product samples outside or over the counter of the Franchised Business, as applicable;
(vi) a provision that provides that if we assume your obligations and replace you as the lessee under the Lease or sign a new lease, and we later reassign the Lease or new lease to another franchisee, we will not be liable for any obligations to landlord under the Lease or new lease after the reassignment;
(vii) a provision, or a separate collateral assignment of lease, that provides that your landlord reserves to us the right, at our election, to take an assignment of the leasehold interest and to occupy the Accepted Location for the Franchised Business upon termination or expiration of this Agreement or default under the Lease; and
(viii) a provision that provides that your Franchised Business will have at least one designated parking space for curb-side pickup.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, franchisees must use commercially reasonable efforts to ensure that all leases include specific preferred terms, unless Cinnabon agrees otherwise in writing. These terms cover various scenarios related to breach of contract, termination, and Cinnabon's rights to the premises and lease.
The preferred lease terms that Cinnabon franchisees should strive to include in their leases are designed to protect Cinnabon's interests in the event of franchisee default or lease termination. These include provisions that require the landlord to notify Cinnabon of any franchisee breach or default, granting Cinnabon the right to cure such defaults. They also ensure Cinnabon's right to enter and operate the business at the location, assume the lease, and assign or sublet the premises if the franchisee defaults or the agreement terminates. Furthermore, Cinnabon retains the right to remove proprietary products and materials bearing their trademarks upon lease expiration or termination.
Additional terms include stipulations that the lease cannot be modified without Cinnabon's written consent, which will not be unreasonably withheld, conditioned, or delayed. The lease should also allow the franchisee to offer or distribute product samples outside the business. If Cinnabon assumes the lease and later reassigns it to another franchisee, Cinnabon will not be liable for any obligations to the landlord after the reassignment. The lease should also grant Cinnabon the right to take an assignment of the leasehold interest and occupy the location upon termination or expiration of the agreement or default under the lease, and ensure that the franchised business has at least one designated parking space for curbside pickup.
However, these preferred lease terms do not apply if the Cinnabon franchised business is an Express Bakery located in a Host Facility. Franchisees should be aware of these requirements and exceptions when negotiating their leases to ensure compliance with Cinnabon's standards and to protect both their and Cinnabon's interests.