Is GoTo Foods a party to the Franchise Agreement or other agreements signed with Cinnabon franchisees?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
d in this Disclosure Document.
ITEM 21
FINANCIAL STATEMENTS
Attached as Exhibit A to this Disclosure Document are the audited financial statements of GoTo Systems, our parent company, which include the consolidated balance sheets as of December 29, 2024 and December 31, 2023 and the related consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022. GoTo Systems guarantees the performance of our obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A.
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us.
Source: Item 21 — Financial Statements (FDD page 113)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, GoTo Foods is not a party to the Franchise Agreement or other agreements that Cinnabon signs with its franchisees. However, GoTo Foods will be providing required support and services to franchisees under a management agreement with Cinnabon. The financial statements of GoTo Foods are included in the FDD as Exhibit A for disclosure purposes.
Despite not being a direct party to the agreements, GoTo Systems, the parent company of Cinnabon, guarantees Cinnabon's performance of its obligations under the Franchise Agreement. This guarantee is also included as Exhibit A in the FDD. This means that GoTo Systems is legally bound to ensure that Cinnabon fulfills its commitments to franchisees.
Prospective franchisees should understand that while GoTo Foods provides support and services, and GoTo Systems guarantees Cinnabon's obligations, the direct contractual relationship is between the franchisee and Cinnabon. If a franchisee has concerns about the support and services provided by GoTo Foods, they should address these concerns to Cinnabon, who remains responsible for ensuring these services are performed in compliance with the Franchise Agreement.