If a Cinnabon franchisee chooses to use a financing consultant referred by Cinnabon, what must the franchisee do?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 10 — Financing (FDD page 66)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon may engage an advisor to provide consulting services to franchisees to assist them with securing financing. Cinnabon may also pay the advisor for this assistance. However, if a franchisee chooses to use the consultant, the franchisee must sign the consultant's form of agreement. Cinnabon will not be responsible for the consultant's provision of services to the franchisee.
This means that while Cinnabon may offer a referral to a financing consultant, the franchisee is ultimately responsible for evaluating and agreeing to the terms of service with that consultant. The franchisee should carefully review the consultant's agreement to understand the scope of services, fees, and any potential liabilities.
This arrangement is fairly typical in franchising, where franchisors may provide resources or referrals but do not assume direct responsibility for third-party services. It is important for prospective Cinnabon franchisees to conduct their own due diligence and seek independent advice when making financial decisions related to their franchise.