If a Cinnabon franchisee chooses to use a financing consultant referred by Cinnabon, what must the franchisee sign?
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 refer prospective franchisees to financing consultants to assist them in securing financing. Cinnabon may pay the advisor for their assistance to franchisees. If a franchisee chooses to use the consultant, the franchisee must sign the consultant's form of agreement. Cinnabon is not 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 the franchise industry, where franchisors often provide resources or referrals but do not directly assume responsibility for third-party services. It is important for prospective Cinnabon franchisees to conduct their own due diligence on any referred consultants and ensure they are comfortable with the terms of the consultant's agreement before signing.