What are the geographic limitations for filing suits related to the Cinnabon SRU Lease Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the SRU Lease Agreement | Summary |
|---|---|---|
| a. Length of the SRU Lease | 3 | Terminates when lease with landlord terminates or |
| Agreement term | Franchise Agreement terminates | |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to | Not applicable | |
| renew or extend | ||
| d. Termination by franchisee | 14 | You must give two weeks advance written notice. In the event you terminate the SRU Lease Agreement prior to the passage of 12 months, you will be responsible for rental payments for the entire 12 month period. |
| e. Termination by us without cause | 14 | We may terminate the SRU Lease Agreement with 48 hours' written notice. |
| f. Termination by us with cause | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| g. "Cause" defined- curable defaults | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| h. "Cause" defined –non-curable defaults | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| i. Franchisee's obligations on | 14 | Return the SRU to us at your expense |
| termination/non-renewal | ||
| Provision | Section in the SRU Lease Agreement | Summary |
| --------------------------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| j. | Not applicable | |
| Assignment of contract by us | ||
| k. "Transfer" by franchisee-defined | 17 | Any sale, transfer, assignment, etc. of all or part of a franchisee's ownership interest. |
| l. Our approval of transfer by | 17 | Any transfer must be approved by us |
| franchisee | ||
| m. Conditions for our approval of | Not applicable | |
| transfer | ||
| n. Our right of first refusal to | Not applicable | |
| acquire franchisee's business | ||
| o. Our option to purchase | Not applicable | |
| franchisee's business | ||
| p. | Not applicable | |
| Death or disability of franchisee | ||
| q. Non-competition covenants | Not applicable | |
| during the term of the franchise | ||
| r. Non-competition covenants after | Not applicable | |
| the franchise is terminated or | ||
| expires | ||
| s. | Not applicable | |
| Modification of the agreement | ||
| t. | Not applicable | |
| Integration/merger clause | ||
| u. Dispute resolution by | 19 | Most disputes must be resolved by arbitration |
| arbitration or mediation | ||
| v. Choice of forum | 19 | Suits must be filed in Fulton County, Georgia, the Northern District of Georgia, or any other court where our principal place of business is located |
| w. | 20 | Georgia law governs the agreement |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 93–100)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, lawsuits related to the SRU (Satellite Retail Unit) Lease Agreement must be filed within specific geographic boundaries. The FDD states that suits must be filed in Fulton County, Georgia, the Northern District of Georgia, or any other court where Cinnabon's principal place of business is located.
This stipulation means that a franchisee would likely need to travel to Georgia to pursue any legal action against Cinnabon related to the SRU Lease Agreement. This could increase the cost and complexity of resolving disputes, as the franchisee would need to hire legal counsel familiar with Georgia law and potentially incur travel expenses for court appearances, regardless of where their Cinnabon franchise is located.
It is important to note that this choice of forum clause applies specifically to suits related to the SRU Lease Agreement. The Franchise Agreement itself may have different stipulations regarding choice of forum, as indicated in another section of the FDD. Prospective franchisees should carefully review both agreements to understand the geographic limitations for filing suits related to each.