Is Cinnabon liable for the performance of the General Contractor designated or pre-approved for a Cinnabon buildout?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We will designate or pre-approve one or more licensed and insured general contractors (a "General Contractor") that you must engage, at your own expense, to complete your buildout, unless we, in our sole discretion, agree in writing to accept a General Contractor that you propose. Our designation, pre-approval, or acceptance of a General Contractor will not in any way be our endorsement of such General Contractor or render us liable for such General Contractor's performance. (Franchise Agreement, Section 6.1.A.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon is not liable for the performance of a designated or pre-approved general contractor. While Cinnabon will designate or pre-approve general contractors that franchisees must use for their buildout, this action does not constitute an endorsement or create liability for the contractor's work. The franchisee is responsible for the expense of the general contractor.
This means that as a Cinnabon franchisee, you bear the risk of the general contractor's performance. If the contractor fails to complete the buildout properly or on time, you cannot hold Cinnabon responsible. This is a common arrangement in franchising, where franchisees are typically responsible for managing their own construction and buildout processes.
Prospective franchisees should carefully vet any general contractor, even if they are on Cinnabon's approved list. Checking references, reviewing past work, and ensuring the contractor is properly licensed and insured are crucial steps. It would be prudent to discuss with Cinnabon what criteria they use to designate or pre-approve general contractors and what recourse a franchisee has if a contractor performs poorly.