If a Cinnabon franchisee will operate a Satellite Retail Unit (SRU), which addendum must they sign?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain circumstances, and subject to availability, we also grant qualified franchisees the right to operate a Satellite Retail Unit ("SRU") as an additional selling location within the mall, airport, enclosed building or other retail location where an existing Bakery is located ("SRU Program"). We typically only offer the opportunity to operate an SRU to franchisees after they have operated their Bakery for a period of time. If you will operate an SRU, you will sign the Satellite Retail Unit Addendum attached in Exhibit C of this Disclosure Document (the "SRU Addendum"), which modifies certain terms of the Franchise Agreement, and will be required to meet our insurance requirements for an SRU.
In addition, unless we agree otherwise, you must purchase or lease the SRU (which includes the POS System) from us, our affiliate, or a third party that we approve. If you lease the SRU from us or our affiliate, you must sign the Satellite Retail Unit Lease Agreement attached in Exhibit C of this Disclosure Document (the "SRU Lease Agreement").
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–25)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a franchisee who will operate a Satellite Retail Unit (SRU) must sign the Satellite Retail Unit Addendum. This addendum, attached as Exhibit C to the Disclosure Document, modifies certain terms of the Franchise Agreement.
In addition to the SRU Addendum, the franchisee will also be required to meet Cinnabon's insurance requirements specific to SRUs. Furthermore, unless Cinnabon agrees otherwise, the franchisee must purchase or lease the SRU, including the POS system, from Cinnabon, its affiliate, or an approved third party. If the franchisee chooses to lease the SRU from Cinnabon or its affiliate, they must also sign the Satellite Retail Unit Lease Agreement, which is also attached as Exhibit C.
Cinnabon typically offers the opportunity to operate an SRU to franchisees after they have operated their Bakery for a period of time, indicating that SRUs are generally an option for established franchisees looking to expand their operations within existing locations like malls or airports.