If operating a Co-Branded Bakery, what happens to the Co-Branded Agreement or Co-Branded Franchise when transferring a Cinnabon franchise?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| o. You must comply with our right of first refusal. p. If you operate a Co-Branded Bakery, the Co-Branded Agreement or Co-Branded Franchise are transferred at the same time. |
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, if a franchisee operates a Co-Branded Bakery, the Co-Branded Agreement or Co-Branded Franchise is transferred at the same time as the Cinnabon franchise. This means that when a franchisee sells or transfers their Cinnabon franchise, the rights and obligations related to the co-branding arrangement are also transferred to the new franchisee.
This provision ensures that the co-branding relationship continues uninterrupted when the Cinnabon franchise changes ownership. The new franchisee will step into the shoes of the previous franchisee with respect to the Co-Branded Agreement or Co-Branded Franchise.
For a prospective franchisee, this means they need to carefully evaluate the terms of the Co-Branded Agreement in addition to the Cinnabon Franchise Agreement. Understanding the obligations and responsibilities under both agreements is crucial, as the new franchisee will be bound by both upon transfer. It is also important to note that the FDD states that the Express Schedule only applies to Express Bakeries and the Concession Schedule only applies to Concession Bakeries.