For a Cinnabon franchise, which sections of the Franchise Agreement detail the franchisee's obligations related to site selection?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
nto a management agreement with GoTo Foods for it to provide certain support and services to Cinnabon franchisees. GoTo Foods may delegate certain of these responsibilities to CLLC, the previous franchisor of Cinnabon franchises, or other affiliates. However, we remain responsible for all of the support and services required under the Franchise Agreement.
Our Pre-Opening Obligations
Before you open your Bakery, we will fulfill the following obligations:
1. Site Selection Review. We will review the location you select for your Bakery and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the market, and provide us with a copy of this analysis. We estimate the cost for this site selection analysis will be $2,500 to $5,000. We consider the following factors in determining whether to accept sites: population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other restaurants. There is no time limit for us to approve or disapprove of a site. (Franchise Agreement, Section 5.1)
While we may assist you in selecting a proposed site, we are not obligated to do so. We or our affiliates typically do not lease or sublease locations for Bakeries, but we may do so from time to time. (Franchise Agreement, Section 5.2)
We expect you to retain an independent expert to evaluate the suitability of a proposed site and to conduct your independent investigation of the site. We disclaim any responsibility for the suitability of the Accepted Location. Our acceptance of the site is based on the site satisfying our minimum site selection criteria only, and will not be construed as a representation or warranty that the Bakery located at the Accepted Location will be successful.
Source: Item 9 — Franchisee's Obligations (FDD pages 63–66)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Section 5.1 and 5.2 of the Franchise Agreement, as referenced in Item 11, contain information regarding site selection. Section 5.1 outlines that Cinnabon will review the location selected by the franchisee and either accept or reject it based on whether it meets the minimum site criteria. The location becomes the "Accepted Location" only upon Cinnabon's approval, and the franchisee cannot acquire the site before this acceptance. If a location isn't agreed upon when signing the Franchise Agreement, the franchisee must find a site that meets Cinnabon's criteria within a specified geographic area. Cinnabon may require a site selection analysis from an approved supplier, costing $2,500 to $5,000, which analyzes factors like traffic, demographics, and competition. Cinnabon considers factors such as population density, traffic flow, visibility, parking, income, and competition when evaluating sites, and there is no set time limit for approval or disapproval.
Section 5.2 states that while Cinnabon may assist in site selection, they are not obligated to do so. Typically, Cinnabon or its affiliates do not lease or sublease locations for bakeries, but they may do so occasionally. Item 11 also mentions Section 5.5, which pertains to relocation reviews, where Cinnabon will evaluate proposed relocation sites based on the same site selection criteria used for the initial location.
For franchisees considering a Cinnabon Express Bakery or Concession Bakery, additional amendments to the Franchise Agreement affect site selection. Section 5.3, concerning the acceptance of a proposed location, is deleted and replaced for Concession Bakeries, as noted in Item 23. Similarly, Section 5.4.C, which discusses preferred lease terms, does not apply to Express Bakeries located within a Host Facility, and Section 5.5, regarding relocation of the franchised business, is deleted entirely for Express Bakeries, as also stated in Item 23. These modifications indicate that site selection and relocation options may be more restricted or handled differently for these types of Cinnabon franchises compared to a standard bakery.