What are the preferred lease terms that a Cinnabon franchisee should try to include in their Lease?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must ensure that all Site Agreements comply with any terms set forth in the Manuals.
- C.
Preferred Lease Terms.
You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
(i) a provision which requires the landlord concurrently to provide us with a copy of any written notice of breach or default under the Lease sent to you, and which grants to us the right (but not the obligation) to cure any defaults under the Lease within a reasonable time (not to exceed 15 days for monetary defaults and 30 days for non-monetary defaults);
(ii) a provision that provides that upon the expiration or termination of this Agreement or upon your default under the Lease or under this Agreement, we will, without your or the landlord's further consent, have (a) a continuing right of entry into the Franchised Business, (b) the right to operate a Business at the Accepted Location, (c) the right, but not the obligation, to assume your interests under the existing terms, conditions and covenants of the Lease, and (d) should we assume your position under the Lease, the right to assign the Lease or sublet the premises to a third party which will operate a Business at the location;
(iii) a provision that provides that upon expiration or termination of the Lease, we will, without your or the landlord's further consent, have a continuing right of entry into the Franchised Business to remove Proprietary Products and any materials bearing the Marks;
(iv) a provision that provides that the Lease may not be modified or amended without our written consent which will not unreasonably be withheld, conditioned or delayed by us;
(v) a provision that allows you to offer or distribute product samples outside or over the counter of the Franchised Business, as applicable;
(vi) a provision that provides that if we assume your obligations and replace you as the lessee under the Lease or sign a new lease, and we later reassign the Lease or new lease to another franchisee, we will not be liable for any obligations to landlord under the Lease or new lease after the reassignment;
(vii) a provision, or a separate collateral assignment of lease, that provides that your landlord reserves to us the right, at our election, to take an assignment of the leasehold interest and to occupy the Accepted Location for the Franchised Business upon termination or expiration of this Agreement or default under the Lease; and
(viii) a provision that provides that your Franchised Business will have at least one designated parking space for curb-side pickup.
D.
Site Agreement Modifications.
You must submit a copy of any proposed modification, amendment, or renewal of the Site Agreement (a "Site Agreement Change") (along with a true and complete copy of the then-existing Site Agreement) to us for our review and approval prior to executing such documents, not less than 10 days prior to the proposed effective date of such modification, amendment, or renewal.
Our review of the proposed Site Agreement Change will be limited to ensuring that it is compliant with the terms of this Agreement.
Our acceptance of the Site Agreement Change shall not be unreasonably withheld and may be conditioned upon the inclusion of terms in the Site Agreement acceptable to us, including those provisions as specified in Section 5.4.C. (Preferred Lease Terms).
If you renew a Lease or a Lease is extended by the landlord for a period of 12 months or more, we may require you to pay us our then-current lease renewal fee, which may be increased in any calendar year by no more than the Allowed Adjustment.
We will notify you in writing whether we approve of the proposed Site Agreement Change.
If approved and subsequently signed, you must provide us with a copy of the signed Site Agreement Change within 15 days after its execution.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees must make commercially reasonable efforts to include specific provisions in their leases, unless Cinnabon agrees otherwise in writing. These preferred lease terms are designed to protect Cinnabon's interests and ensure the continuity of the business, even in situations where the franchisee defaults or the franchise agreement terminates. However, these preferred lease terms do not apply if the Franchised Business is an Express Bakery located in a Host Facility.
One key provision requires the landlord to provide Cinnabon with copies of any breach or default notices sent to the franchisee. This allows Cinnabon the right, but not the obligation, to cure any defaults, with a reasonable timeframe of up to 15 days for monetary defaults and 30 days for non-monetary defaults. Another provision ensures that upon the expiration or termination of the franchise agreement, or upon the franchisee's default, Cinnabon has the right to enter the franchised business, operate a business at the location, and assume the franchisee's interests under the existing lease. If Cinnabon assumes the lease, it also has the right to assign the lease or sublet the premises to a third party who will operate a Cinnabon business at the location.
Additional preferred terms include the right for Cinnabon to enter the franchised business after lease expiration or termination to remove proprietary products and materials bearing Cinnabon's trademarks. The lease cannot be modified or amended without Cinnabon's written consent, which Cinnabon will not unreasonably withhold, condition, or delay. The lease should also allow the franchisee to offer or distribute product samples outside or over the counter of the franchised business. Furthermore, if Cinnabon assumes the lease and later reassigns it to another franchisee, Cinnabon will not be liable for any obligations to the landlord after the reassignment.
Finally, the lease should grant Cinnabon the right to take an assignment of the leasehold interest and occupy the location upon termination or expiration of the franchise agreement or default under the lease. The lease should also ensure that the franchised business has at least one designated parking space for curbside pickup. Franchisees must submit any proposed modifications, amendments, or renewals of the site agreement to Cinnabon for review and approval at least 10 days before the proposed effective date. Cinnabon’s acceptance of these changes may be conditional upon the inclusion of the preferred lease terms.