What information and documentation is a Cinnabon franchisee obligated to provide when requesting consent for a transfer?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
her directly or indirectly) to direct or
cause the direction of management and polices of you or the Franchised Business to any individual or Entity, or group of individuals or Entities, that did not have that power before that acquisition.
- 16.2 No Transfer Without Our Consent. This Agreement and the license are personal to you, and we have granted the license in reliance on your (and, if you are an Entity, your Owners') business skill, financial capacity, and personal character. Accordingly, neither you nor any of the Owners or any successors to any part of your interest in this Agreement or the license may make any Transfer or permit any Transfer to occur without obtaining our prior written consent. Any purported Transfer, without our prior written consent, will be null and void and will constitute a default under this Agreement, for which we may terminate this Agreement without opportunity to cure.
- A. Requesting Consent. If you or any of your Owners desire to make a Transfer, you must promptly provide us with written notice. You agree to provide any information and documentation relating to the proposed Transfer that we reasonably require. We have the right to communicate with both you, your counsel, and the proposed transferee on any aspect of a proposed Transfer. No Control Transfer may be completed until at least 60 days after we receive all requested information to evaluate the proposed Control Transfer. No other Transfer may be completed until at least 30 days after we receive all requested information to evaluate such proposed Transfer.
- B. Granting Consent. We have sole and absolute discretion to withhold our consent, except as otherwise provided in Sections 16.4 through 16.7.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees need to provide specific information and documentation when seeking approval for a transfer. Cinnabon requires written notice when a franchisee or any of their owners wants to transfer their interest in the franchise. Franchisees must supply any information and documentation related to the proposed transfer that Cinnabon reasonably requires. Cinnabon retains the right to communicate with the franchisee, their counsel, and the potential transferee regarding any aspect of the proposed transfer.
For transfers that do not result in a change of control, franchisees must provide advance notice and submit copies of all proposed contracts and other information about the transfer and the transferee that Cinnabon requests. Cinnabon then has a reasonable time, at least 30 days after receiving all the necessary information, to evaluate the proposed transfer.
In the case of a control transfer, the franchisee must notify Cinnabon in writing at least 90 days before the proposed transfer and provide all requested information at least 60 days prior to the transfer. Additionally, the franchisee must furnish written notice from their landlord confirming the landlord's agreement to transfer the Site Agreement to the new transferee. Franchisees must also ensure that all outstanding sums owed to Cinnabon and its affiliates are paid before the transfer can proceed.
Furthermore, the franchisee and their owners must agree to remain liable for all obligations to Cinnabon related to the franchised business that arose before the transfer's effective date. They must also sign any instruments that Cinnabon reasonably requests to evidence this liability. These requirements ensure that Cinnabon maintains control over who operates its franchises and that all financial and contractual obligations are met during and after the transfer process.