If Cinnabon has not yet accepted a site for the Bakery when the Franchise Agreement is executed, what must the franchisee do?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Bakery may only be operated at the Accepted Location. If we have not yet accepted a site for the Bakery when we execute the Franchise Agreement, you must select a location that we accept in accordance with our site selection criteria within a site selection area that we specify. We will determine the site selection area on a case-by-case basis. You will have no exclusive or protected rights in your site selection area.
Source: Item 12 — Territory (FDD pages 82–87)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, if a site for the Bakery has not been accepted when the Franchise Agreement is executed, the franchisee is responsible for selecting a location. This location must be chosen in accordance with Cinnabon's site selection criteria, within a site selection area that Cinnabon specifies. The site selection area is determined by Cinnabon on a case-by-case basis.
This means that prospective Cinnabon franchisees need to be proactive in finding a suitable location that meets the franchisor's requirements. While Cinnabon provides a site selection area, the franchisee bears the responsibility of identifying a specific site within that area. It is important to understand Cinnabon's site selection criteria to ensure that the chosen location has a higher chance of being accepted.
It's also important to note that the franchisee will not have exclusive or protected rights within the site selection area. This implies that other franchisees, company-owned outlets, or other channels of distribution could potentially operate in the same area. Therefore, franchisees should carefully evaluate the competitive landscape when selecting a location and be prepared to compete with other businesses, including other Cinnabon locations.