If a Cinnabon franchisee does not receive Goods from Cinnabon, its affiliates, or its Approved Suppliers, is this considered a breach of the Franchise Agreement by Cinnabon?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not receive Goods from us, our affiliates, or our Approved Suppliers, this will not be our breach of the Franchise Agreement, nor will we, our affiliates, or our Approved Suppliers be liable to you for this. (Franchise Agreement, Section 7.1.B.)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, if a franchisee does not receive goods from Cinnabon, its affiliates, or its approved suppliers, this will not be considered a breach of the Franchise Agreement by Cinnabon. Furthermore, Cinnabon, its affiliates, or its approved suppliers will not be held liable to the franchisee for this failure to provide goods.
This clause protects Cinnabon from liability if they or their suppliers are unable to fulfill orders for goods. This could occur due to supply chain disruptions, high demand, or other unforeseen circumstances. While Cinnabon commits to using reasonable efforts to ensure that approved suppliers fulfill orders in a timely manner, they do not guarantee the availability of goods.
For a prospective franchisee, this means understanding that there is a risk of not receiving necessary goods from approved sources. It would be prudent to discuss with Cinnabon what measures they have in place to mitigate supply issues and what alternatives are available if goods are not readily available. This could include identifying backup suppliers or alternative products that can be used in the short term.