For Cinnabon franchises in Indiana, does the Indiana Addendum supersede Section 17 (Default and Termination) of the Franchise Agreement regarding unilateral termination, and if so, under what conditions?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The prohibition by Indiana Code 23-2-2.7-1(7) against unilateral termination of the franchise without good cause or in bad faith, good cause being defined therein as "a material breach of the franchise agreement," will supersede the provisions of Section 17 (Default and Termination) of the Franchise Agreement in the State of Indiana to the extent they may be inconsistent with this prohibition.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the Indiana Addendum does address the unilateral termination clause within the Franchise Agreement. Specifically, the Indiana Addendum modifies Section 17 (Default and Termination) of the Franchise Agreement concerning unilateral termination.
The Indiana Addendum states that the prohibition by Indiana Code against unilateral termination of the franchise without good cause or in bad faith supersedes any contrary provisions in Section 17 of the Franchise Agreement. The Indiana code defines "good cause" as a material breach of the franchise agreement.
For a Cinnabon franchisee in Indiana, this means that Cinnabon cannot terminate the franchise agreement without demonstrating a material breach of the agreement or acting in bad faith. This provides additional protection to the franchisee against arbitrary termination, ensuring that Cinnabon must have a legitimate and substantial reason for ending the franchise agreement.