factual

Does GoTo Foods guarantee Cinnabon's obligations under the Franchise Agreement or other agreements signed with franchisees?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 29, 2024 and December 31, 2023. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.

Source: Item 21 — Financial Statements (FDD page 113)

What This Means (2025 FDD)

According to Cinnabon's 2025 Franchise Disclosure Document, GoTo Foods does not guarantee Cinnabon's obligations under the Franchise Agreement or other agreements signed with franchisees. Instead, GoTo Systems, the parent company of Cinnabon, provides this guarantee.

Specifically, the FDD states that GoTo Foods will be providing required support and services to franchisees under a management agreement with Cinnabon. However, the financial statements of GoTo Foods are provided for disclosure purposes only, and GoTo Foods is not a party to the Franchise Agreement or other agreements signed with franchisees.

This means that while GoTo Foods plays a role in supporting Cinnabon franchisees, it is GoTo Systems that ultimately assumes the financial responsibility for Cinnabon's obligations to its franchisees under the Franchise Agreement. Prospective franchisees should be aware of this distinction and understand the roles of both GoTo Foods and GoTo Systems within the Cinnabon franchise system.

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.