Does the Cinnabon franchise agreement allow Cinnabon to vary the Standards for any franchisee as they deem necessary?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4 Variances. You agree that complete uniformity under many varying geographic and other conditions, and over extended spans of time, is not practical and may be detrimental to the System, and that as a result: (i) we may vary the Standards for any franchisee as we deem necessary; (ii) we may grant franchises using the System under terms that may differ materially from the terms of this Agreement; and (iii) our obligations and rights with respect to our various franchisees may differ materially from our obligations and rights with respect to you, without in any way affecting our rights with respect to you. You will have no right to require that we disclose any variation to you or that we grant you the same or a similar variation.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon has the right to vary the standards for any franchisee as they deem necessary. Cinnabon states that complete uniformity is not practical due to varying geographic and other conditions, and over extended spans of time, and may be detrimental to the Cinnabon system. As a result, Cinnabon may vary the standards for any franchisee as they deem necessary.
Additionally, Cinnabon may grant franchises using the system under terms that may differ materially from the terms of the standard franchise agreement. Cinnabon's obligations and rights with respect to its various franchisees may differ materially from its obligations and rights with respect to a specific franchisee, without affecting Cinnabon's rights with respect to that franchisee.
A Cinnabon franchisee has no right to require that Cinnabon disclose any variation to them or that Cinnabon grant them the same or a similar variation. This means that Cinnabon can offer different terms and conditions to different franchisees without having to offer the same to all franchisees. This could create an uneven playing field among franchisees, where some have more favorable terms than others.