What happens if a Cinnabon franchisee is in default of their agreement regarding the obligation of Cinnabon or its suppliers to sell goods?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. 5 calendar days after we send you a notice of default, you fail to cure a default related to (i) selling, bartering, or exchanging, or attempting to sell, barter, or exchange, any Proprietary Goods or Approved Products at wholesale or retail, except as contemplated by this Agreement, (ii) failing to purchase all Goods from us, our affiliates, or our designated Approved Suppliers, or (iii) using any unapproved Goods in the Franchised Business.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a franchisee can be in default of their agreement if they fail to purchase all goods from Cinnabon, its affiliates, or its designated approved suppliers, or if they use any unapproved goods in their franchised business.
If such a default occurs, Cinnabon will send the franchisee a notice of default. The franchisee then has five calendar days from the date of the notice to correct the issue.
If the franchisee fails to cure the default within this five-day period, Cinnabon may take further action as outlined in the Franchise Agreement, which could include termination of the agreement. This highlights the importance of adhering to the approved supplier and product requirements to maintain compliance with the franchise agreement and avoid potential penalties.