What relief is the arbitrator prohibited from awarding in a dispute involving Cinnabon?

According to Cinnabon's 2025 Franchise Disclosure Document, in disputes subject to arbitration, the arbitrator is restricted in the types of damages they can award. Specifically, the arbitrator cannot declare any of Cinnabon's trademarks to be generic or invalid.

Furthermore, the arbitrator is prohibited from awarding any special, consequential, exemplary, or punitive damages against either party involved in the dispute. This limitation applies to both Cinnabon and the franchisee, with both parties waiving their rights to claim such damages against the other to the fullest extent permitted by law. However, there is an exception related to Section 19.1.F, which addresses the waiver of punitive damages, suggesting specific circumstances where such damages might still be considered.

This waiver of certain types of damages can significantly impact the potential financial outcomes of arbitration. Franchisees should be aware that their ability to recover damages may be limited to direct losses rather than broader, indirect impacts or punitive measures intended to punish the other party. It is important for prospective franchisees to fully understand the implications of this clause and how it might affect their rights in the event of a dispute with Cinnabon.