factual

Does the general release language in the Cinnabon Franchise Agreement relieve Cinnabon from liability imposed by the Minnesota Franchises Law?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

Agreement, all initial fees and payments owed by such franchisee under each of the Franchise Agreements that is subject to the Multi-Unit Addendum shall be deferred until the franchisor completes its pre-opening obligations under the applicable Franchise Agreement.

    1. You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
    1. Section 20.3 (General Release) of the Franchise Agreement is amended to include the following:

The general release required as a condition of sale shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

    1. All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
    1. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.

MINNESOTA ADDENDUM TO FRANCHISE AGREEMENT

In recognition of the requirements of the Minnesota Franchises Law, Minn. Stat. §§ 80C.01 through 80C.22, and of the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce, Minn. Rules §§ 2860.0100 through 2860.9930, the Franchise Agreement, for franchises offered and sold in the State of Minnesota or to Minnesota residents, is amended to include the following:

Source: Item 23 — Receipts (FDD pages 114–399)

What This Means (2025 FDD)

According to the 2025 Cinnabon Franchise Disclosure Document, the general release language within the Franchise Agreement does not relieve Cinnabon or any other person or entity from liability imposed by the Minnesota Franchises Law. This protection is specifically included in the Minnesota Addendum to the Franchise Agreement.

The Minnesota Addendum explicitly states that any general release language in the Franchise Agreement will not absolve Cinnabon from liabilities under the Minnesota Franchises Law. This ensures that franchisees in Minnesota retain their rights and protections under state law, regardless of any general release clauses they may sign.

Furthermore, Section 16.3.I of the Franchise Agreement, concerning control transfer, is amended to ensure that the release does not apply to claims under the Minnesota Franchises Law. Section 20.8 of the Franchise Agreement also states that the general release language contained in the agreement will not relieve Cinnabon from liability imposed by the Minnesota Franchise Investment Law. These stipulations reinforce the protection afforded to Minnesota franchisees under state law.

These provisions are crucial for prospective Cinnabon franchisees in Minnesota, as they guarantee that their rights under the Minnesota Franchises Law remain intact, irrespective of any general release clauses in the Franchise Agreement. This offers a level of security and recourse for franchisees in case of disputes or issues arising from the franchise relationship.

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.