What law governs the Cinnabon SRU Lease Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the SRU Lease Agreement | Summary |
|---|---|---|
| a. Length of the SRU Lease | 3 | Terminates when lease with landlord terminates or |
| Agreement term | Franchise Agreement terminates | |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to | Not applicable | |
| renew or extend | ||
| d. Termination by franchisee | 14 | You must give two weeks advance written notice. In the event you terminate the SRU Lease Agreement prior to the passage of 12 months, you will be responsible for rental payments for the entire 12 month period. |
| e. Termination by us without cause | 14 | We may terminate the SRU Lease Agreement with 48 hours' written notice. |
| f. Termination by us with cause | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| g. "Cause" defined- curable defaults | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| h. "Cause" defined –non-curable defaults | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| i. Franchisee's obligations on | 14 | Return the SRU to us at your expense |
| termination/non-renewal | ||
| Provision | Section in the SRU Lease Agreement | Summary |
| --------------------------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| j. | Not applicable | |
| Assignment of contract by us | ||
| k. "Transfer" by franchisee-defined | 17 | Any sale, transfer, assignment, etc. of all or part of a franchisee's ownership interest. |
| l. Our approval of transfer by | 17 | Any transfer must be approved by us |
| franchisee | ||
| m. Conditions for our approval of | Not applicable | |
| transfer | ||
| n. Our right of first refusal to | Not applicable | |
| acquire franchisee's business | ||
| o. Our option to purchase | Not applicable | |
| franchisee's business | ||
| p. | Not applicable | |
| Death or disability of franchisee | ||
| q. Non-competition covenants | Not applicable | |
| during the term of the franchise | ||
| r. Non-competition covenants after | Not applicable | |
| the franchise is terminated or | ||
| expires | ||
| s. | Not applicable | |
| Modification of the agreement | ||
| t. | Not applicable | |
| Integration/merger clause | ||
| u. Dispute resolution by | 19 | Most disputes must be resolved by arbitration |
| arbitration or mediation | ||
| v. Choice of forum | 19 | Suits must be filed in Fulton County, Georgia, the Northern District of Georgia, or any other court where our principal place of business is located |
| w. | 20 | Georgia law governs the agreement |
| Choice of law |
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, the SRU (Satellite Retail Unit) Lease Agreement is governed by Georgia law. Specifically, Section 20 of the SRU Lease Agreement states that Georgia law dictates the terms and conditions of the agreement. This means that any legal disputes or interpretations of the lease will be subject to the laws of the State of Georgia.
For a prospective Cinnabon franchisee, this is important because it establishes the legal framework within which the SRU Lease Agreement operates. Franchisees should familiarize themselves with key aspects of Georgia law that may affect their rights and obligations under the lease. This includes understanding landlord-tenant laws, contract law, and any other relevant statutes that could impact their business operations.
It is also important to note that while Georgia law governs the SRU Lease Agreement, the Franchise Agreement itself may have different choice of law provisions, particularly concerning non-competition covenants. Franchisees should carefully review both agreements and consult with legal counsel to fully understand the implications of these choice of law provisions and how they may interact in the event of a dispute.