How long does a Cinnabon franchisee have to cure a default related to obtaining the signing of Personal Covenants?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. 10 calendar days after we send you a notice of default, you fail to cure a default relating to obtaining the signing of the Personal Covenants required in Section 15.4 (Restrictive Covenants).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee has 10 calendar days to cure a default related to obtaining the signing of Personal Covenants. This cure period begins after Cinnabon sends a notice of default.
Personal Covenants are agreements that individuals with an equity interest in the franchisee must sign. These covenants bind them to the obligations outlined in Section 15 of the Franchise Agreement, which pertains to Confidential Information and Restrictive Covenants. The individuals agree to be personally bound by these obligations as if they were directly contracting with Cinnabon.
Failure to secure these signatures within the 10-day cure period could lead to further action by Cinnabon, potentially including termination of the franchise agreement. Therefore, it is crucial for prospective franchisees to understand who is required to sign these covenants and to ensure that all necessary signatures are obtained promptly to avoid default.