If I operate a Co-Branded Cinnabon Bakery, what happens to the Co-Branded Agreement or Co-Branded Franchise upon transfer?

According to Cinnabon's 2025 Franchise Disclosure Document, if you operate a Co-Branded Bakery, the Co-Branded Agreement or Co-Branded Franchise are transferred at the same time. This means that when you sell or transfer your Cinnabon Co-Branded Bakery, the agreement that governs the co-branding arrangement is also transferred to the new owner. This ensures that the co-branding arrangement continues uninterrupted with the new franchisee, assuming they meet Cinnabon's qualifications for franchisees.

In addition to the co-branding agreement transferring simultaneously, the standard transfer conditions apply. These include providing Cinnabon with prior written notice of the transfer, paying all outstanding debts to Cinnabon, and ensuring that you are not in default of the Franchise Agreement. The prospective transferee must also meet Cinnabon's qualifications and sign the assignment and guaranty agreements. Furthermore, you, along with your guarantors and owners, must sign a general release, and you will remain liable for any obligations that arose before the transfer. A transfer fee will also be due to Cinnabon.

For transfers to a related party, similar conditions apply, such as providing prior written notice and ensuring the transferee meets Cinnabon's qualifications. The transferee must also assume the Franchise Agreement and guaranty in writing. A transfer fee is required, and you and your guarantors/owners must sign a general release while remaining liable for pre-transfer obligations. These provisions ensure that Cinnabon maintains control over who operates a franchise and that all financial and legal obligations are properly transferred.

Cinnabon also retains the right of first refusal, allowing them to match any offer for your bakery or a substantial interest in your business. This gives Cinnabon the option to acquire your location themselves rather than approving a transfer to a third party. Additionally, Cinnabon has the option to purchase your goods related to the bakery at fair market value and may purchase your location if you own it or your interest in any lease.