For the purpose of Cinnabon's Item 19 financial performance representation, what constitutes an 'eligible franchise'?

According to Cinnabon's 2025 Franchise Disclosure Document, an 'eligible franchise' for the purposes of Item 19 is defined as a franchise that reported sales in all 52 weeks of Fiscal Year 2024, which ended on December 29, 2024. This definition is important because the financial performance representations in Item 19 are based only on the performance of these 'eligible franchises'.

Cinnabon's decision to only include franchises that reported sales for the entire fiscal year ensures that the data presented is representative of a full year of operations. This excludes new franchises that opened during the year or those that may have temporarily closed, providing a more consistent basis for evaluating potential financial performance. The FDD specifically notes that the Item 19 data excludes several categories of Cinnabon bakeries, including those in traditional or non-traditional locations (other than enclosed malls, convenience stores, and Auntie Anne's co-branded locations), express bakeries, concession bakeries, other co-branded franchises, affiliate-owned bakeries, and any full bakeries that were not 'eligible franchises' during the fiscal year.

Prospective franchisees should understand that the financial performance of bakeries excluded from Item 19 may vary significantly from those included. Therefore, it is crucial to consider the specific type and location of the franchise being considered and to not rely solely on the data presented in Item 19. Cinnabon encourages potential franchisees to consult with their own financial, business, and legal advisors, as well as to contact existing franchisees to gain a comprehensive understanding of the potential financial performance of a Cinnabon franchise.