Are Cinnabon's obligations under the Service Level Agreement dependent on the Franchisor's obligations under the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Company's obligations and duties under this Agreement are independent of Franchisor's obligations and duties under the Franchise Agreement.
Franchisor shall not be in default of the Franchise Agreement for any breach of this Agreement by Company and any default of Company under this Agreement will not excuse Franchisee's performance of Franchisee's obligations hereunder or under the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the obligations and duties under the Service Level Agreement are independent of the obligations and duties under the Franchise Agreement. Specifically, Cinnabon Franchisor SPV LLC will not be in default of the Franchise Agreement if the Company (an affiliate of the Franchisor) breaches the Service Level Agreement.
Furthermore, any default by the Company under the Service Level Agreement does not excuse the franchisee from performing their obligations under either the Service Level Agreement or the Franchise Agreement. This means that even if the support services are not being adequately provided, the franchisee is still responsible for upholding their end of both agreements.
This clause clarifies that the two agreements are distinct and that performance under one does not hinge on the other. A prospective Cinnabon franchisee should understand that they cannot withhold payments or other obligations based on perceived failures of the Company to deliver adequate support services, as the obligations are independent.