If a Cinnabon franchisee fails to make required changes to distinguish the Franchised Business after termination, what action can Cinnabon take?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Immediately cease using the System, including the Marks and any confusingly similar names, marks, commercial symbols, systems, insignia, symbols, color schemes, trade dress, designs, procedures, domain names, and methods. If you fail or refuse to make changes to the Franchised Business required to distinguish the Franchised Business from its former appearance, we have the right, in addition to all other remedies, to enter the Accepted Location and make the required changes on your behalf, and you must pay to us all costs and expenses we or our affiliates incur in making the changes, including interest from the date of demand, plus an administrative fee in an amount equal to 15% of the costs and expenses that we or our affiliates incur.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, if a franchisee fails to make the necessary changes to differentiate their business from its former appearance after the termination of the franchise agreement, Cinnabon has the right to take action. In addition to any other remedies available to them, Cinnabon can enter the location and make the required changes themselves on the franchisee's behalf.
The franchisee is then responsible for paying Cinnabon all costs and expenses incurred by Cinnabon or its affiliates in making these changes. This includes interest from the date of demand for payment.
Furthermore, Cinnabon will charge an administrative fee equal to 15% of the total costs and expenses they incur. This means the franchisee will not only have to cover the direct costs of the changes but also an additional fee to compensate Cinnabon for their administrative efforts in managing the process.