What must a Cinnabon franchisee obtain from the Co-Branded Franchisor to continue operating the Co-Branded Franchise at the Accepted Location for the duration of the Renewal Term?

According to the 2025 Cinnabon Franchise Disclosure Document, a franchisee seeking to renew their franchise for an additional term must obtain the right to continue operating the Co-Branded Franchise at the current location from the Co-Branded Franchisor. This may involve meeting specific renewal conditions set by the Co-Branded Franchisor, potentially including signing a renewal Co-Branded Agreement. The Co-Branded Franchisor in this case is Carvel Franchisor SPV LLC, as the Cinnabon franchise must be operated in conjunction with a Carvel franchise.

This condition highlights the interconnected nature of the Cinnabon and Carvel co-branded franchise. A Cinnabon franchisee's ability to renew their Cinnabon franchise is directly dependent on their standing and agreement with the Carvel franchisor. This adds a layer of complexity compared to a standard franchise renewal, as the franchisee must satisfy the requirements of two separate franchisors.

It is important for prospective Cinnabon franchisees to understand the renewal terms and conditions of both the Cinnabon and Carvel franchise agreements. They should carefully review the Co-Branded Agreement with Carvel Franchisor SPV LLC to understand what will be required to secure renewal rights from them. This includes any performance metrics, financial obligations, or other conditions that must be met. Franchisees should also be aware of the potential for the Co-Branded Franchisor to change these conditions at the time of renewal.

Furthermore, Cinnabon and the Co-Branded Franchisor may independently impose certain fees, including the renewal fee. Therefore, a Cinnabon franchisee should clarify with both franchisors which fees they will be responsible for and how these fees might impact their business's profitability during the renewal term.