If a Cinnabon franchisee violates the Franchise Agreement, does this constitute a breach of the SRU Addendum?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
se is terminated or | | | | expires | | | | s. Modification of the agreement | Not applicable | | | t. Integration/merger clause | Not applicable | | | u. Dispute resolution by | 19 | | | arbitration or mediation | | | | v. Choice of forum | 19 | | | | | | | | | | | w. Choice of law | 20 | | | | Provisions | Section in Franchise Agreement | | t. | Integration/ merger clause | FA: 22.2 | | u. | Dispute resolution by arbitration or mediation | FA: 19.1 | | v. | Choice of forum | FA: 19.1 | | | w. Choice of law | FA: 15.6 and 22.5 |
SATELLITE RETAIL UNIT ADDENDUM
| Provision | Section in the SRU Addendum | Summary |
|---|---|---|
| a. Length of the SRU Addendum term | Not applicable | Length of term is dependent on Franchise Agreement term. |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to | Not applicable | |
| renew or extend | ||
| d. | 15 | You must give us 14 days' advance written notice. |
| Termination by franchisee | ||
| e. Termination by us without cause | 15 | We may terminate the SRU Addendum with 48 hours' prior written notice to you for any reason. |
| f. Termination by us with cause | 13 and 14 | We may terminate the SRU Addendum for any breach of the SRU Addendum or the Franchise Agreement. |
| g. "Cause" defined- curable defaults | 13 | Any violation of the provisions of |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 93–100)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, any violation of the Franchise Agreement by a franchisee is considered a breach of the SRU Addendum. This is explicitly stated in the summary table outlining termination conditions related to the SRU Addendum.
This means that if a Cinnabon franchisee fails to meet their obligations under the Franchise Agreement, Cinnabon has grounds to terminate the SRU Addendum. The SRU Addendum likely covers specific operational or location-related aspects of the franchise, so compliance is critical.
For a prospective Cinnabon franchisee, this underscores the importance of fully understanding and adhering to the terms of both the Franchise Agreement and the SRU Addendum. Failure to comply with the Franchise Agreement can have ramifications beyond the agreement itself, potentially leading to the termination of other related agreements like the SRU Addendum. This interconnectedness of agreements is a common practice in franchising, designed to ensure consistent brand standards and operational compliance across all franchise locations.