Does GoTo Foods guarantee Cinnabon's obligations under the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
GoTo Systems guarantees our performance of obligations under our franchise agreements.
GoTo Foods
Source: Item 21 — Financial Statements (FDD page 113)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, GoTo Foods Systems LLC provides a guarantee of Cinnabon's obligations under the Franchise Agreement. However, GoTo Foods LLC itself does not guarantee Cinnabon's obligations.
Specifically, the FDD states that GoTo Systems guarantees Cinnabon's performance of obligations under the franchise agreements. This guarantee by GoTo Systems is further detailed in Exhibit A of the FDD, which includes the financial statements and a guarantee of performance. The guarantee ensures that GoTo Systems will assume the duties and obligations of Cinnabon Franchisor SPV LLC under its franchise registration and Franchise Agreement.
The guarantee remains in effect until all obligations of Cinnabon under its franchise registrations and the Franchise Agreement are satisfied or until Cinnabon's liability to its franchisees under the Franchise Agreement has been completely discharged. GoTo Systems, as the guarantor, is not discharged from liability if a claim by a franchisee against Cinnabon remains outstanding, and the guarantee is binding on GoTo Systems and its successors and assigns.