If a Cinnabon franchisee's Co-Branded Agreement terminates, expires, or they cease to operate the Co-Branded Franchise at the Accepted Location, what is the consequence regarding their Cinnabon franchise agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
J. Section 17.2 (Our Termination: No Opportunity to Cure) is amended by adding the following new Section 17.2.M.:
17.2.M. Your Co-Branded Agreement terminates or expires or you for any other reason cease to operate the Co-Branded Franchise at the Accepted Location.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, if a franchisee's Co-Branded Agreement terminates, expires, or they cease to operate the Co-Branded Franchise at the Accepted Location, Cinnabon has the right to terminate the Cinnabon franchise agreement without an opportunity for the franchisee to cure the default.
This is because Section 17.2 of the Cinnabon Franchise Agreement, which deals with termination without an opportunity to cure, is amended to include a new section, 17.2.M, that specifically addresses this situation. This means that Cinnabon can immediately terminate the franchise agreement if the Co-Branded Agreement ends or the franchisee stops operating the Co-Branded Franchise at the approved location.
This condition is particularly important for prospective Cinnabon franchisees considering a co-branded location, as the viability of their Cinnabon franchise is directly tied to the status and operation of the co-branded business. Franchisees should carefully review the terms of both the Cinnabon Franchise Agreement and the Co-Branded Agreement to fully understand their obligations and the potential consequences of any issues arising with the co-branded aspect of their business.