Does the Cinnabon franchise agreement allow for a renewal term for Concession Bakeries?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Section 2.2 (Renewal Term) is deleted in its entirety.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the franchise agreement for Concession Bakeries does not include a renewal term. Specifically, Section 2.2, which typically addresses renewal terms, is entirely deleted from the agreement for Concession Bakeries. This means that the standard renewal options available to other Cinnabon franchisees do not apply to those operating a Concession Bakery.
For a prospective Cinnabon franchisee considering a Concession Bakery, this is a significant point to consider. The initial term of the agreement will be the only term, unless Cinnabon offers a new agreement. Unlike franchisees with renewal options, Concession Bakery operators do not have a contractual right to extend their franchise beyond the initial term. This could impact long-term business planning and investment decisions, as there is no guarantee of continued operation after the initial term expires.
This lack of a renewal term may be due to the nature of Concession Bakeries, which might operate in locations with shorter lease terms or in conjunction with other businesses. However, it is crucial for potential franchisees to understand this limitation and discuss long-term options with Cinnabon during their due diligence. Understanding the factors that Cinnabon considers when deciding whether to offer a new agreement after the initial term will be important for anyone investing in a Cinnabon Concession Bakery.