What information 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.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their interest in the franchise must provide written notice to Cinnabon. The franchisee must also agree to provide any information and documentation relating to the proposed transfer that Cinnabon reasonably requires. Cinnabon retains the right to communicate with the franchisee, their counsel, and the proposed transferee regarding any aspect of the proposed transfer.
For a transfer that does not result in a change of control, the franchisee must give Cinnabon advance notice and submit copies of all proposed contracts and other information concerning the transfer and the prospective transferee that Cinnabon may request. Cinnabon will then have a reasonable period, not less than 30 days after receiving all requested information, to evaluate the proposed transfer. The franchisee and/or the transferee must also meet specific conditions, including paying all sums owed to Cinnabon, not being in default of the Franchise Agreement, ensuring the transferee meets Cinnabon's qualifications, signing an assignment and guaranty, signing a general release, and remaining liable for pre-transfer obligations.
For a transfer that does result in a change of control, the franchisee must notify Cinnabon in writing at least 90 days prior to the proposed transfer and provide all requested information at least 60 days prior to the proposed Control Transfer.
These stipulations ensure that Cinnabon maintains control over who operates its franchises and that any new franchisee meets their standards. The transfer process involves significant administrative steps and potential costs, such as transfer fees, which a prospective franchisee should carefully consider.