In the Cinnabon FDD, how is Section 6 (Leasehold Improvements) amended, specifically regarding the addition of Section 6.6?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 6 (Leasehold Improvements) of the Franchise Agreement is amended by adding the following as Section 6.6:
SRU Acquisition. If you operate an SRU, you must purchase or lease the SRU and related equipment from our designated Supplier, which may be us or one of our affiliates. If you lease the SRU, you must execute a lease for the SRU in the form designated by the Supplier (the "SRU Lease Agreement"), pay any initial and ongoing required fees under the SRU Lease Agreement, and provide us with an executed copy of the SRU Lease Agreement. You must obtain our written approval for the design of, and any initial or subsequent modifications to, the SRU.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Section 6, which covers Leasehold Improvements, is amended to include a new Section 6.6 that specifically addresses SRU (Satellite Retail Unit) Acquisition.
The added Section 6.6 stipulates that if a franchisee operates an SRU, they must either purchase or lease the SRU and its related equipment from a supplier designated by Cinnabon, which could be Cinnabon itself or one of its affiliates. If the franchisee chooses to lease the SRU, they are obligated to execute a lease agreement in the form specified by the supplier, pay all initial and ongoing fees as required by the SRU Lease Agreement, and provide Cinnabon with a copy of the executed SRU Lease Agreement.
Furthermore, the amendment requires franchisees to obtain written approval from Cinnabon for the design of the SRU, as well as for any initial or subsequent modifications made to it. This ensures that all SRUs meet Cinnabon's standards and maintain brand consistency.