When must a prospective Cinnabon franchisee sign and date the Franchisee Disclosure Acknowledgement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND, DO NOT SIGN THE ACKNOWLEDGEMENT.
As you know, Cinnabon Franchisor SPV LLC ("we") and the franchisee identified below ("you") are preparing to enter into a Cinnabon® Franchise Agreement (the "Franchise Agreement") for the operation of a Cinnabon® franchise. The purpose of this Acknowledgement is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Acknowledgement the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement and pay your franchise fee.
Please review each of the following statements carefully and initial by each providing your acknowledgement that the statement is accurate and true. If you find that a statement is not accurate and true, please cease signing this Acknowledgement and related documents and immediately e-mail Tim Goodman, Senior Vice President of Franchise Administration, at tgoodman@gotofoods.com and provide an explanation of why you believe such statement is not accurate and true.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a prospective franchisee cannot sign or date the Franchisee Disclosure Acknowledgement on the same day they receive the Franchise Disclosure Document. Instead, the Acknowledgement must be signed and dated on the same day the franchisee signs the Franchise Agreement and pays the franchise fee. However, if the franchise is to be operated in, or the franchisee is a resident of, Maryland, they should not sign the acknowledgement.
This requirement ensures that franchisees have adequate time to review the FDD and seek professional advice before committing to the franchise. By separating the acknowledgement from the initial receipt of the FDD, Cinnabon aims to confirm that franchisees fully understand the terms and conditions of the franchise agreement before finalizing the deal.
Furthermore, Cinnabon emphasizes the importance of the statements within the Acknowledgement. Franchisees are instructed to carefully review each statement and initial to confirm its accuracy. If a franchisee finds any statement to be inaccurate, they are directed to halt the signing process and immediately contact Cinnabon's Senior Vice President of Franchise Administration, providing an explanation for their concern. This process highlights Cinnabon's commitment to transparency and ensuring that franchisees are well-informed and properly represented throughout the transaction.