factual

When leasing a Cinnabon SRU, when is the prepayment of two months' rental fee due?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

Prepayment of Two Months Rental Fee.

The Maximum Monthly Rental Fee (as defined below) for the first two months of the SRU operation must be prepaid by Lessee to Lessor ("Prepayment") upon the execution of this Agreement.

Source: Item 23 — Receipts (FDD pages 114–399)

What This Means (2025 FDD)

According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee leasing a Satellite Retail Unit (SRU) is required to prepay the maximum monthly rental fee for the first two months of operation. This prepayment is due upon the execution of the SRU lease agreement with the lessor.

This requirement means that a prospective Cinnabon SRU franchisee must have sufficient capital to cover not only the initial start-up costs but also the rental fees for the first two months of operation upfront. This is in addition to other fees such as a $1,000 security deposit and a $500 set-up fee, both also due upon execution of the agreement. The FDD also mentions a training fee of $750 that may be assessed.

It is important for potential franchisees to carefully review the SRU Lease Agreement and understand all payment obligations, including the amount of the maximum monthly rental fee, to ensure they are financially prepared to meet these requirements. Furthermore, franchisees should be aware that failure to make timely payments can result in interest charges and potential termination of the agreement.

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.