factual

For how long after the termination of the Cinnabon franchise agreement are the post-term restrictive covenants in effect?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

e. THE PROVISIONS OF THIS SECTION 11 SHALL SURVIVE EXPIRATION OR TERMINATION OF THIS AGREEMENT.

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

What This Means (2025 FDD)

According to the 2025 Cinnabon Franchise Disclosure Document, Section 11 states that the provisions outlined in that section will remain in effect even after the agreement expires or is terminated. This means that certain obligations and restrictions imposed on the franchisee during the term of the agreement will continue to apply even after the franchise relationship ends.

These post-term restrictive covenants are designed to protect Cinnabon's brand, trade secrets, and customer relationships. They typically include restrictions on operating a competing business within a certain geographic area and for a specific period, as well as prohibitions against using or disclosing confidential information learned during the franchise term.

For a prospective Cinnabon franchisee, this means that even after leaving the Cinnabon system, they will still be bound by certain obligations. It is important to carefully review Section 11 and Section 15.4 (mentioned in the Indiana addendum) of the franchise agreement to fully understand the scope and duration of these post-term covenants. A franchisee should also seek legal counsel to assess the enforceability of these provisions in their specific jurisdiction, as state laws can vary regarding the enforceability of non-compete agreements.

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.