Does GoTo Systems 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
For value received, GoTo Foods Systems LLC, a Delaware limited liability company (the "Guarantor"), located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342, absolutely and unconditionally guarantees to assume the duties and obligations of Cinnabon Franchisor SPV LLC, located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This Guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor signs this guarantee at Atlanta, Georgia on this 28th day of March 2025.
Guarantor:
GOTO FOODS SYSTEMS LLC
By:_
Name: Michael J. Dixon
Title: Chief Financial Officer
Source: Item 21 — Financial Statements (FDD page 113)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, GoTo Systems guarantees Cinnabon's obligations under its franchise agreements. This guarantee is further detailed in Exhibit A of the FDD, under "GUARANTEE OF PERFORMANCE." GoTo Foods Systems LLC, referred to as the "Guarantor", absolutely and unconditionally guarantees to assume the duties and obligations of Cinnabon Franchisor SPV LLC, referred to as the "Franchisor", under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document.
This 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, whichever comes first. The guarantee specifies that GoTo Systems is not discharged from liability if a claim by a franchisee against Cinnabon remains outstanding, and notice of acceptance is waived.
For a prospective Cinnabon franchisee, this guarantee from GoTo Systems provides an added layer of security. It means that GoTo Systems is financially and legally committed to ensuring that Cinnabon fulfills its obligations as outlined in the Franchise Agreement. This could be particularly important if Cinnabon were to face financial difficulties or other challenges that might otherwise prevent it from meeting its commitments to franchisees. The guarantor does not waive receipt of notice of default on the part of the Franchisor, and the guarantee is binding on the Guarantor and its successors and assigns.
The guarantee is signed by Michael J. Dixon, Chief Financial Officer, on behalf of GoTo Foods Systems LLC, as of March 28, 2025, in Atlanta, Georgia. This formalizes the commitment of GoTo Systems to support Cinnabon franchisees, providing reassurance that the franchisor's obligations will be upheld.