Is Cinnabon responsible for negotiating the terms of the Site Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with all material terms specified therein. You will be solely responsible for negotiation of the terms of the Site Agreement and performance under the Site Agreement. We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with our requirements. (Franchise Agreement, Section 5.4)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the franchisee is solely responsible for negotiating the terms of the Site Agreement. The Site Agreement refers to the lease, sublease, or other rental agreement (Lease) or purchase agreement (Purchase Agreement) for the location. While Cinnabon has the right to review the Site Agreement to verify compliance with their requirements, they are not obligated to do so.
This means that prospective Cinnabon franchisees must handle all negotiations with landlords or sellers themselves. Cinnabon's review is only to ensure the agreement meets their standards, not to secure favorable terms for the franchisee. The franchisee is also responsible for performing under the Site Agreement.
This arrangement is typical in the franchise industry, where franchisees generally bear the responsibility for securing and managing their own locations. Franchisees should seek legal counsel to review any Site Agreements before signing, ensuring they understand all obligations and potential liabilities. Additionally, franchisees may want to engage a commercial real estate broker to assist in finding and negotiating a suitable location.