For Cinnabon MUA Franchise Agreements, what fee might be required if an extension is requested for a deadline in the Development Schedule?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
e Initial Franchise Fees under each of the MUA Franchise Agreements in a lump sum upon execution of the MUA Franchise Agreements. We have no obligation to refund any portion of the Initial Franchise Fees to you, even if this Addendum or any of the MUA Franchise Agreements are terminated and/or you fail to develop one or more of the MUA Businesses.
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- Site Selection Areas. You acknowledge that you do not
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, a franchisee may request an extension to the deadlines set in the Development Schedule. Cinnabon has the right to require a $2,500 extension fee for each extended deadline if they agree to modify the deadline. However, Cinnabon is not obligated to extend any deadlines.
This means that if a Cinnabon franchisee with a Multi-Unit Addendum (MUA) is struggling to meet the deadlines for site approval, construction, or opening, they can ask for more time. However, Cinnabon's approval isn't guaranteed, and they might charge $2,500 for each deadline they extend. This fee is per deadline, so if a franchisee needs more time for both site approval and construction, they could potentially face $5,000 in extension fees.
It's important to note that paying the extension fee doesn't automatically grant the extension. Cinnabon still has the discretion to refuse the request. Also, failing to meet the deadlines without an approved extension can lead to the termination of the MUA Franchise Agreements for unopened Cinnabon businesses. This highlights the importance of realistic planning and diligent effort in meeting the development schedule.
Many franchise systems have development timelines and extension policies. The $2,500 fee may or may not be typical; prospective franchisees should compare this with other franchise opportunities they are considering. Franchisees should carefully consider the implications of these deadlines and the potential costs of extensions when evaluating the Cinnabon franchise opportunity.