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What are the franchisee's obligations, as outlined in the specified sections of the Cinnabon Franchise Agreement, regarding site development and ongoing training?

Cinnabon Franchise · 2025 FDD

Answer 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. (Franchise Agreement, Section 5.3)

  • 2. Site Agreement. You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with all material terms specified therein. You will be solely responsible for negotiation of the terms of the Site Agreement and performance under the Site Agreement. We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with our requirements. (Franchise Agreement, Section 5.4)
  • 3. Evaluate Co-branding and Express Bakeries in Host Facilities. We will evaluate any request to (i) co-brand an Express Bakery with another business, (ii) operate an Express Bakery in a Host Facility, or (iii) change the Host Facility for an Express Bakery, and you must obtain our consent in connection with your request.
  • 4. General Contractor. We will designate or pre-approve one or more licensed and insured general contractors (a "General Contractor") that you must engage, at your own expense, to complete your buildout, unless we, in our sole discretion, agree in writing to accept a General Contractor that you propose. Our designation, pre-approval, or acceptance of a General Contractor will not in any way be our endorsement of such General Contractor or render us liable for such General Contractor's performance. (Franchise Agreement, Section 6.1.A.
  • 5. Architect. We will designate or pre-approve one or more licensed architects (an "Architect") that you must engage, at your own expense, to develop architectural plans, unless

we, in our sole discretion, agree in writing to accept an Architect that you propose. Our designation, pre-approval, or acceptance of an Architect will not in any way be our endorsement of such Architect or render us liable for such Architect's performance or such Architect's compliance with professional design standards or adherence to local codes. You also must engage, at your expense, licensed engineers (e.g., mechanical, electrical, plumbing, or structural engineers), as necessary or appropriate. (Franchise Agreement, Section 6.2.A.(i))

  • 6. Plans and Build-out. We will provide a sample layout and specifications for the Bakery. We will review the Architectural Plans developed by your Architect and engineers. Our review of the Architectural Plans is limited to ensuring your compliance with our Standards and is not designed to assess structural integrity or compliance with applicable laws.

Source: Item 9 — Franchisee's Obligations (FDD pages 63–66)

What This Means (2025 FDD)

According to the 2025 Cinnabon Franchise Disclosure Document, franchisees have several obligations related to site development and training. Regarding site development, the franchisee is responsible for selecting a location that meets Cinnabon's minimum site criteria. While Cinnabon may assist in site selection, the franchisee must obtain a site selection analysis from an Approved Supplier if required, with costs ranging from $2,500 to $5,000. The franchisee is also solely responsible for negotiating the terms of the Site Agreement (lease or purchase agreement) and ensuring its compliance with Cinnabon's requirements. The franchisee must engage a designated or pre-approved general contractor and architect, at their own expense, for the buildout and architectural plans, respectively.

Concerning ongoing training, the Cinnabon franchisee's Required Trainees may not begin the Management Training Program until six weeks before the scheduled opening date of their Franchised Business. Additionally, the franchisee is obligated to adhere to Cinnabon's standards and manuals, immediately adopting any supplements provided.

Furthermore, the franchisee has a Local Marketing Obligation, which is currently equal to 1% of the Net Sales of their Franchised Business per calendar quarter. For Grand Opening Advertising, the franchisee's obligation is $6,000 for Other Locations, $15,000 for Streetside Locations, and $25,000 for First Four Streetside Locations in Emerging Markets, which includes advertising for both brands. If this is the franchisee's first or second Franchised Business (including Franchised Businesses owned by their affiliates and including any Carvel® , Cinnabon® , or Cinnabon Swirl™ Franchised Businesses), Cinnabon will send one or more of its representatives to the Franchised Business, at its expense, for a minimum of two days of On-Site Training concurrent with beginning operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.