If a Cinnabon franchisee operates a Concession Bakery in a Host Facility and the Site Agreement is terminated, does Cinnabon have the right to terminate the franchise agreement without an opportunity to cure?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- O. Section 17.2 (Our Termination; No Opportunity to Cure) is amended by adding the following Section 17.2.M. and 17.2.N.:
- 17.2.M. If you operate a Concession Bakery located in a Host Facility and you fail to comply with any of the terms of the Site Agreement or Site Agreement is terminated or (if it is your only Accepted Location) expires.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon has the right to terminate the franchise agreement without an opportunity to cure if a franchisee operates a Concession Bakery in a Host Facility and the Site Agreement is terminated. Specifically, Section 17.2 of the Franchise Agreement, regarding Cinnabon's termination rights without opportunity to cure, is amended to include this scenario.
This amendment means that if a Cinnabon franchisee's right to operate within a Host Facility is terminated (as defined in the Site Agreement), Cinnabon can immediately terminate the franchise agreement without giving the franchisee a chance to fix the issue. This could occur if the Host Facility closes, if the franchisee violates the Site Agreement, or if the Site Agreement simply expires and is not renewed, provided that the location is the only Accepted Location.
This condition highlights the importance of carefully reviewing the terms of any Site Agreement with the Host Facility, as the franchisee's ability to operate the Cinnabon Concession Bakery is directly tied to the Site Agreement's validity. A prospective franchisee should consider negotiating terms in the Site Agreement that provide adequate notice and opportunity to remedy any potential issues before termination, to protect their Cinnabon franchise.