Does Cinnabon provide any assurance or warranty regarding the potential success or profits of the franchised business?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
No Reliance on Contrary Representations.
You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement.
You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- D.
Financial Performance Representations.
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Business or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates.
Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
- 21.3 No Waiver or Disclaimer of Reliance in Certain States.
The following provision applies only to franchisees and Franchised Businesses that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon does not make any guarantees regarding the potential financial performance of a franchise. The FDD stipulates that no employee or representative is authorized to make any promises about potential profits, earnings, or revenues that are not explicitly stated in the Disclosure Document. This means that prospective franchisees should not rely on any verbal or written statements about potential financial success that are not included in the FDD or the Franchise Agreement.
Cinnabon emphasizes the importance of franchisees acknowledging that they have not relied on any representations or warranties outside of what is written in the Franchise Agreement and the FDD. This acknowledgement is crucial, as Cinnabon relies on it. By signing, the franchisee confirms they have carefully considered all statements and find them accurate and truthful. This protects Cinnabon from potential claims based on alleged promises or guarantees not documented in the official franchise documents.
However, the FDD includes a provision specific to franchisees in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin). This provision states that no signed statement can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Cinnabon or its representatives. This suggests that while Cinnabon aims to avoid making guarantees, franchisees in these states retain certain legal protections regarding reliance on franchisor statements.