After the Cinnabon franchise agreement expires or terminates, for how long does the post-term restrictive covenant last?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- OBLIGATIONS ON EXPIRATION OR TERMINATION
18.1 General Obligations. On expiration or termination of this Agreement for any reason, you must:
E.
Immediately comply with the restrictive covenants in Section 15 (Confidential Information; Restrictive Covenants).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, franchisees must comply with the restrictive covenants outlined in Section 15 of the franchise agreement upon expiration or termination of the agreement.
Specifically, Section 18.1 E states that franchisees must immediately comply with the restrictive covenants detailed in Section 15, which addresses confidential information and restrictive covenants. This means that after the franchise agreement ends, the franchisee is still bound by the terms of Section 15 regarding non-competition and confidentiality.
While the excerpt indicates that compliance with restrictive covenants is required post-termination, the specific duration of these covenants is not provided in this section. To fully understand the length of the post-term restrictive covenant, prospective franchisees should refer to Section 15 of the Cinnabon franchise agreement or consult with the franchisor directly.