If I am a Cinnabon franchisee, what condition must be met regarding ownership of the Cinnabon franchise and the Co-Branded Agreement, according to Section 1.4?

According to the 2025 Cinnabon Franchise Disclosure Document, Section 1.4 regarding ownership of equity is amended to include a specific condition for franchisees. If you are a Cinnabon franchisee operating a co-branded location, the ownership of your Cinnabon franchise must be identical to the ownership of the Co-Branded Agreement throughout the term of the agreement. This means that the franchisee and owners listed under the Cinnabon agreement must be the same as those listed under the Co-Branded Agreement.

This requirement ensures consistency and alignment between the two franchise agreements. It prevents situations where different individuals or entities control the Cinnabon franchise versus the co-branded franchise, which could lead to operational or contractual conflicts. By maintaining identical ownership, Cinnabon aims to streamline management and ensure that all parties are equally committed to both brands.

For a prospective Cinnabon franchisee, this means careful consideration must be given to the ownership structure from the outset. All individuals or entities intended to be owners of the Cinnabon franchise must also be owners of the co-branded franchise, and this must remain consistent throughout the term of the agreement. Any changes to ownership would require approval from both Cinnabon and the co-branded franchisor, and failure to maintain identical ownership could potentially lead to a breach of the franchise agreement.