If a Cinnabon franchisee or their owners are convicted of a felony, can Cinnabon terminate the agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
You or any of your Owners, officers, or directors: (i) are convicted of or plead no contest to a felony or a crime involving fraud or moral turpitude or any other crime that we deem likely to have an adverse effect on the good name, business, goodwill, image or reputation of the Franchised Business, the System, or the Marks, whether on a local, regional, or national scale (including any such convictions or pleas that occurred prior to the Effective Date that we learn of after the Effective Date); (ii) engage in fraudulent, deceptive, unethical, criminal, or other conduct that, in our determination, is likely to have an adverse effect on the good name, business, goodwill, image, or reputation of the Franchised Business, the System, or the Marks, whether on a local, regional, or national scale; (iii) make, or have made, any material misrepresentation to us related to the Franchised Business or this Agreement; or (iv) knowingly maintain false books or records or submit any false reports to us related to the Franchised Business.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon has the right to terminate the franchise agreement if a franchisee or their owners, officers, or directors are convicted of a felony. This also applies if they plead no contest to a felony or a crime involving fraud or moral turpitude.
Cinnabon can also terminate the agreement if the crime is deemed likely to have an adverse effect on the good name, business, goodwill, image, or reputation of the Franchised Business, the System, or the Marks, whether on a local, regional, or national scale. This includes any convictions or pleas that occurred prior to the Effective Date that Cinnabon learns of after the Effective Date.
This clause gives Cinnabon broad discretion to terminate the agreement based on criminal activity, even if the activity is not directly related to the operation of the franchise. Prospective franchisees should be aware of this provision and understand the potential consequences of any criminal convictions or pleas.