Will Cinnabon guarantee a franchisee's note, lease, or obligation for any lender?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not offer financing for trade fixtures, opening inventory, or any other purpose.
We may refer you to leasing or financing companies not affiliated with us. We and our affiliates receive no fees or other financial benefits from any lender for your financing. Currently, we will not guarantee your note, lease, or obligation, for any lender, or any other person or entity. We may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you and if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
We or our affiliate, in our or their sole discretion and subject to availability, may lease to qualified franchisees an SRU as an additional selling location within the mall, airport, enclosed building or other retail location where an existing Bakery is located. This lease is controlled by the terms of an SRU Lease Agreement between you and us or our affiliate. See Items 6 and 8.
We participate in the SBA's Franchise Directory. We may modify the Franchise Agreement, if necessary, to comply with SBA requirements for you to participate in certain SBA loan programs.
We may sell, assign, or discount to a third party any note, financing-related contract or other instrument you give to us.
Source: Item 10 — Financing (FDD page 66)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon does not offer direct financing to franchisees. Cinnabon states that it "will not guarantee your note, lease, or obligation, for any lender, or any other person or entity." This means that prospective franchisees will need to secure their own financing through third-party lenders without a guarantee from Cinnabon.
While Cinnabon does not offer financing, they may refer franchisees to leasing or financing companies that are not affiliated with them. Cinnabon and its affiliates do not receive any fees or financial benefits from lenders for these referrals. Cinnabon may also engage an advisor to provide consulting services to franchisees to assist them with securing financing, and Cinnabon may pay the advisor for this assistance to franchisees. However, Cinnabon will not be responsible for the consultant's provision of services to the franchisee, and the franchisee must sign the consultant's form of agreement if they choose to use the consultant.
It is important to note that franchisees are not required to participate in any financing program that Cinnabon implements. Cinnabon also participates in the SBA's Franchise Directory and may modify the Franchise Agreement, if necessary, to comply with SBA requirements for franchisees to participate in certain SBA loan programs. Cinnabon also retains the right to sell, assign, or discount to a third party any note, financing-related contract, or other instrument a franchisee gives to them.