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What items in the Cinnabon FDD detail the franchisee's obligations regarding compliance?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

-owned or franchised Bakeries. You will not be entitled to additional rights or compensation in any of these cases. See Item 12 for details regarding our reserved rights.

Government Regulation and Certain Factors Affecting the Restaurant Industry

You must comply with all federal, state, and local laws and regulations applicable to businesses generally, including, without limitation, laws and regulations related to workers' compensation, occupational health and safety, minimum wage, overtime, working conditions, discrimination, sexual harassment, tax, environmental protection, citizenship and/or immigration status (including laws requiring verification of status through the Department of Homeland Security's E-Verify program), and reasonable accommodations for employees and customers with disabilities (including the Americans with Disabilities Act).

You must ensure that your computerized point-of-sale system (the "POS System") or your credit card processing terminals (whichever are responsible for processing credit card transactions) are in compliance with the most current Payment Card Industry Data Security Standards ("PCI-DSS"). You also must comply with all applicable federal and state laws and regulations relating to the collection, use, and security of personal information and comply with any privacy policies or data protection and breach response policies we periodically may establish.

Various federal agencies, including the U.S. Food and Drug Administration and the U.S. Department of Agriculture, and state and local health and sanitation agencies have regulations for the preparation of food and the condition of restaurants and food service facilities. You must comply with all federal, state, and local laws and regulations applicable to restaurants and food service facilities, including, without limitation, licensing, health, sanitation, menu labeling, food preparation and packaging, smoking, safety, fire, and other matters. Some jurisdictions may require franchisees to obtain restaurant, business, occupational, food products, health, and miscellaneous licenses.

The Clean Air Act and state implementing laws also may require certain geographic areas to attain and maintain certain air quality standards for ozone, carbon monoxide and particulate matters. As a result, businesses involved in commercial food preparation may be subject to caps on emissions.

We do not assume any responsibility for advising you on these regulatory or legal matters. You should consult with your attorney about federal, state, and local laws and regulations that may

affect your Bakery. Compliance with these laws and regulations, as they may be amended from time to time, can increase your operational costs and affect your bottom line.

ITEM 2

BUSINESS EXPERIENCE

James (Jim) E. Holthouser: Chief Executive Officer

Jim has been our Chief Executive Officer since February 2020. Since February 2020, Jim has also served as (i) President of GoTo Systems, (ii) Chief Executive Officer of GoTo Foods, JJ, each of the Former GoTo Franchisors, and each of the other GoTo Foods Portfolio companies, and (iii) a member of the Board of Managers for GoTo Foods, JJ, and each of the Former GoTo Franchisors. From February 2018 to January 2020, Jim was the owner of Madison County Multiplex, LLC in Stanford, Kentucky. Jim serves in his present capacities in Atlanta, Georgia.

Michael (Mike) J. Dixon: Chief Financial Officer, Treasurer and Assistant Secretary

Mike has been our Chief Financial Officer, Treasurer and Assistant Secretary since March 2017. Mike has been Chief Financial Officer, Treasurer and Assistant Secretary for (i) CLLC, GoTo Foods, and each of the other Former GoTo Franchisors since March 2016 (ii) GoTo Systems and the other GoTo Foods Portfolio companies (except Jamba)

Source: Item 9 — Franchisee's Obligations (FDD pages 63–66)

What This Means (2025 FDD)

According to the 2025 Cinnabon FDD, Item 23 and Item 1 outline the franchisee's compliance obligations. Item 23 details the franchisee's obligation to operate their franchised business in compliance with all applicable laws related to labor, health, and safety. It emphasizes the franchisee's responsibility to research and ensure their business operations do not violate any laws, including federal laws like the ADA, CAN-SPAM Act, TCPA, FACTA, and other anti-solicitation and data security/privacy laws. The franchisee must also provide copies of inspection reports and maintain a Certificate of Fictitious Name if required.

Furthermore, Cinnabon franchisees must comply with privacy requirements and electronic payment standards, including the Payment Card Industry Data Security Standards (PCI-DSS), FACTA, and any privacy or data protection policies established by Cinnabon. Item 1 also states that franchisees must comply with all federal, state, and local laws and regulations applicable to businesses, including those related to workers' compensation, occupational health and safety, minimum wage, overtime, working conditions, discrimination, sexual harassment, tax, environmental protection, citizenship/immigration status, and accommodations for employees/customers with disabilities.

These obligations are in addition to other obligations outlined in the Franchise Agreement. Franchisees must ensure their point-of-sale (POS) system or credit card processing terminals comply with the most current PCI-DSS standards. They must also adhere to all laws and regulations regarding the collection, use, and security of personal information, as well as any privacy policies or data protection and breach response policies established by Cinnabon. This comprehensive approach ensures that Cinnabon franchisees operate their businesses legally and ethically, protecting both the brand and their customers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.