What is the maximum fee that Cinnabon may charge a franchisee to review their systems and verify compliance with Privacy Requirements?

According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon may charge a franchisee a fee to review their systems and verify compliance with privacy requirements. This fee will not exceed 110% of Cinnabon's or its affiliates' actual costs and expenses related to providing these services.

This means that if Cinnabon incurs direct costs of $1,000 to review a franchisee's systems, the maximum fee they can charge the franchisee is $1,100 (110% of $1,000). This covers the expenses Cinnabon incurs while ensuring franchisees adhere to privacy standards and protect personal data adequately.

It is important for prospective franchisees to understand that these security audits and compliance checks are in place to protect both the customer's data and the Cinnabon brand's reputation. Failing to comply with privacy requirements or experiencing a data breach can lead to significant financial and legal repercussions for both the franchisee and Cinnabon. Therefore, franchisees should budget for these potential review fees and ensure they maintain robust security measures as mandated by Cinnabon.