Does the option to purchase my business apply to Cinnabon Express Bakeries?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| o. You must comply with our right of first refusal. p. If you operate a Co-Branded Bakery, the Co-Branded Agreement or Co-Branded Franchise are transferred at the same time. | ||
| FA: 16.4 (non-control transfers) | a. You give us prior written notice of the transfer. b. You pay all sums owed. c. You are not in default d. Transferee meets qualifications e. Transferee signs assignment and guaranty f. You and your guarantors and owners sign a general release. g. You remain liable for pre-Transfer obligations. h.You pay us a Transfer Fee. | |
| FA: 16.5 (related party transfers) | a. You give us prior written notice of the transfer. b. You are not in default c. Transferee meets qualifications d. Transferee assumes in writing the Franchise Agreement and the guaranty. e. You may not be in default under the Franchise Agreement. f. You pay us a Transfer Fee. g. You and your guarantors and owners must sign a general release and remain liable for pre-Transfer obligations | |
| n. Our right of first refusal to acquire your business | FA: 16.8 | We can match any offer for your Bakery or substantially all interest in your entity. |
| ES: 20.Q. | Above not applicable for an Express Bakery. | |
| o. Our option to | FA: 18.4 | We may purchase your Goods related to the Bakery at the fair |
| purchase your | market value (exclusive of good will) and may purchase your | |
| business | Accepted Location if you own it or your interest in any lease. | |
| ES: 20.U. | Above not applicable for an Express Bakery. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 93–100)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the franchisor's option to purchase your business does not apply to Express Bakeries. The table in Item 17 outlines various provisions related to the franchise agreement, and it specifically notes that the standard option to purchase the business, as detailed in FA: 18.4, is 'not applicable for an Express Bakery,' according to ES: 20.U. This means that Cinnabon, under the terms of the Express Schedule, forgoes the right to buy back an Express Bakery location under the same conditions that apply to standard bakeries.
This exception has significant implications for potential Cinnabon Express Bakery franchisees. It means that, unlike standard Cinnabon franchises, Cinnabon does not have a contractual option to purchase the Express Bakery from the franchisee. This could provide more autonomy and potential flexibility for the franchisee when considering selling or transferring the business.
However, it is important to note that Cinnabon retains a right of first refusal to acquire your business, meaning that they can match any offer you receive from a third party to purchase your bakery. This right of first refusal applies to all Cinnabon franchises, including Express Bakeries. Therefore, while Cinnabon cannot proactively force a sale, they do have the ability to step in and purchase the business if the franchisee decides to sell to someone else.
Prospective franchisees should carefully consider these differences when deciding between a standard Cinnabon bakery and an Express Bakery. Understanding the specific terms and conditions related to the sale or transfer of the business is crucial for making an informed investment decision.