Who is responsible for negotiating the terms of the Site Agreement for a Cinnabon franchise?
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 the 2025 Cinnabon 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 rental agreement (Lease) or purchase agreement (Purchase Agreement) for the Cinnabon location.
While Cinnabon may review the Site Agreement to verify compliance with their requirements, they are not obligated to do so. The franchisee is also responsible for performing under the Site Agreement once it is finalized. This means the franchisee bears the responsibility for ensuring the terms are favorable and that they can meet all obligations outlined in the agreement.
This arrangement is typical in franchising, where franchisees generally handle local negotiations while adhering to the franchisor's brand standards and operational requirements. Prospective Cinnabon franchisees should, therefore, be prepared to conduct thorough due diligence, potentially involving legal counsel, to ensure the Site Agreement aligns with their business goals and financial capabilities. They should also be aware of Cinnabon's right to review the agreement and factor in time for this review process.