What is the relocation fee that Cinnabon may charge if a franchisee relocates their business?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ocate the Accepted Location of the Franchised Business at your expense, if, prior to closing the Franchised Business, you submit a site acceptance request (in the form we provide to you) for your new Proposed Location and obtain our acceptance of the relocation to the Proposed Location. A relocation includes any change of
the location of the Franchised Business within a mall, facility, or building to a new location within the same mall, facility, or building. We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
- B. Relocation Conditions. If we approve, in our sole discretion, the relocation of the Franchised Business under this Section 5.5, you agree to comply with the following conditions:
- (i) the new location will be considered the "Accepted Location" as used in this Agreement;
- (ii) all Site Agreements you enter into to secure the new location must comply with Section 5.4 (Site Acquisition);
- (iii) you must make or cause to be made to the former Accepted Location such changes in the signs and interior and exterior of the former Accepted Location so as to effectively distinguish such location from any other Business;
- (iv) we may charge you a relocation fee equal to 10% of the then-current Initial Franchise Fee to cover costs and expenses incurred by us or our affiliates in connection with any such acceptance, evaluation, and relocation of the Franchised Business;
- (v) we may require you to pay an agreed minimum royalty to us during the period in which the Franchised Business is not in operation (if any); and
- (vi) we may require you to sign our then-current form of franchise agreement to replace this Agreement (the "New Franchise Agreement") or any other documents we may require to amend this Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, if Cinnabon approves a franchisee's request to relocate their business, they may charge a relocation fee. This fee is equal to 10% of the then-current Initial Franchise Fee. This fee is intended to cover the costs and expenses incurred by Cinnabon or its affiliates in connection with the acceptance, evaluation, and relocation of the franchised business.
In addition to the relocation fee, Cinnabon may also require the franchisee to meet other conditions. These include ensuring that any site agreements for the new location comply with Cinnabon's site acquisition standards, making changes to the former location to distinguish it from a Cinnabon business, and potentially paying an agreed minimum royalty during any period when the business is not operational during the relocation.
Furthermore, Cinnabon may require the franchisee to sign their then-current form of franchise agreement, which may contain terms that are materially different from the original agreement. However, the franchisee will not be required to pay another initial franchise fee if they sign a new franchise agreement. If the lease term for the new location extends beyond the original term of the agreement, Cinnabon may extend the agreement's term to match the lease term, but the franchisee will be required to pay a relocation extension fee of $1,500 multiplied by the number of years between the original expiration date and the new lease expiration date.
It is important to note that for Express Bakeries, Section 5.5 regarding relocation of the franchised business is deleted in its entirety, meaning these relocation conditions do not apply to Express Bakeries.