Regarding Cinnabon franchises in Indiana, does the Franchise Agreement provision relieving both parties from liability for punitive damages apply?

According to the 2025 Cinnabon Franchise Disclosure Document, the standard Franchise Agreement provision relieving both parties from liability for punitive damages will not apply to franchises offered and sold in the State of Indiana. This means that, unlike in some other states, Cinnabon franchisees in Indiana retain the right to seek punitive damages from the franchisor, and vice versa, in the event of a dispute. Punitive damages are typically awarded when one party's conduct is found to be particularly egregious or malicious.

This modification is outlined in the Indiana Addendum to the Disclosure Document, which specifically addresses how certain provisions of the standard Franchise Agreement are altered to comply with Indiana law. This addendum takes precedence over conflicting terms in the standard agreement, ensuring that Indiana franchisees are afforded the full protection of Indiana's franchise laws.

For a prospective Cinnabon franchisee in Indiana, this is a beneficial provision. It means that Cinnabon cannot shield itself from liability for punitive damages in cases of serious misconduct. Franchisees should carefully review the Indiana Addendum along with the Franchise Agreement to fully understand their rights and obligations under Indiana law.