In the Cinnabon Franchise Agreement, what specific part of Recital D is deleted and replaced by the additional terms in Section 22.11?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Recital D is deleted in its entirety and replaced with the following:
We refer to businesses that use the System and are identified by the Marks as "Businesses." We refer to Businesses that are primarily identified by the CINNABON SWIRL™ Mark and operate with some modifications that we specify to elements of the System used in a standard Business (which modifications are also part of the System) as "Swirl Businesses." You desire to obtain a license to use the System and the Marks to operate one Swirl Business, and we are willing to grant you a license to operate a Swirl Business, subject to the terms and conditions of this Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Recital D of the Franchise Agreement is entirely deleted and replaced by specific language in Section 22.11. The new Recital D defines "Businesses" as entities using Cinnabon's System and Marks. It further defines "Swirl Businesses" as those primarily identified by the CINNABON SWIRL™ Mark, operating with modifications to the standard System elements.
This change clarifies the relationship between Cinnabon and its franchisees, particularly those operating Swirl Businesses. It emphasizes that franchisees are granted a license to use the Cinnabon System and Marks to operate a Swirl Business, subject to the terms and conditions outlined in the Franchise Agreement. This distinction is important as it sets the stage for potential variations in operational requirements or standards for Swirl Businesses compared to traditional Cinnabon locations.
For a prospective franchisee, this means understanding the specific requirements and modifications applicable to Swirl Businesses is crucial. They should carefully review Section 22.11 and any other sections referencing Swirl Businesses to fully grasp their obligations and the scope of their franchise. This also highlights the importance of understanding the definitions of "System," "Marks," and "Approved Products" as they relate to the specific type of Cinnabon franchise being considered.