What happens to the Cinnabon Service Level Agreement if a franchisee sells or transfers the franchised business?

According to Cinnabon's 2025 Franchise Disclosure Document, if a franchisee sells or transfers their Cinnabon business, the existing Service Level Agreement terminates. The new owner or transferee will be required to execute Cinnabon's then-current form of the Service Level Agreement. This ensures that the new franchisee agrees to the current terms and conditions for POS system support.

However, if the Franchise Agreement itself is assigned to a new party with Cinnabon's approval, the Service Level Agreement is automatically assigned to the new franchisee. In this case, the new franchisee assumes all the rights and responsibilities of the original franchisee under the existing Service Level Agreement. This distinction is important because it differentiates between a simple business transfer and a formal assignment of the franchise rights.

This provision protects Cinnabon by ensuring that all franchisees adhere to the most up-to-date service standards and agreements. For a prospective franchisee, it means that if they buy an existing Cinnabon location, they will need to sign a new Service Level Agreement, potentially with different terms than the previous owner. It is important to review the current Service Level Agreement to understand the obligations and costs associated with POS system support.