If I request it, will Cinnabon provide written substantiation for the financial performance representations?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
from the Net Sales figures to obtain your net income or profit.
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- We calculated the figures in the tables in these financial performance representations using financial reports submitted by franchisees. We have not audited or independently verified these financial reports nor have we asked questions of the submitting franchisees to determine whether they are in fact accurate and complete, although we have no information or other reason to believe that they are unreliable. No certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.
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- Written substantiation for the financial performance representations will be made available to you on reasonable request.
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- We encourage you to consult with your own accounting, business, and legal advisors to assist you to prepare your budgets and projections, and to assess the likely or potential financial performance of your franchise. We also encourage you to contact existing franchisees to discuss their experiences with the system and their franchise business.
Source: Item 19 — Financial Performance Representations (FDD pages 100–104)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, Cinnabon will provide written substantiation for the financial performance representations made in Item 19 upon reasonable request. This means that if you, as a prospective franchisee, ask for it, Cinnabon is obligated to supply documentation supporting the financial figures they've presented. This substantiation would likely include the financial reports submitted by franchisees that Cinnabon used to calculate the figures in the tables.
However, it's important to note that Cinnabon has not audited or independently verified these financial reports. They also haven't questioned the franchisees who submitted the reports to determine their accuracy or completeness. While Cinnabon states they have no reason to believe the reports are unreliable, the lack of verification means the figures' accuracy is not guaranteed. Additionally, no certified public accountant has audited these figures or expressed an opinion on their content or form.
As the FDD notes, existing Cinnabon franchisees are the best source of information about franchise operations. Prospective franchisees should consult with their own accounting, business, and legal advisors to assist in preparing budgets and projections, and to assess the likely or potential financial performance of the franchise. Contacting existing franchisees to discuss their experiences with the system and their franchise business is also highly recommended.