What right does Cinnabon retain even after consenting to a transfer of a Cinnabon franchise?

According to the 2025 Cinnabon Franchise Disclosure Document, even after Cinnabon consents to a franchise transfer, that consent does not act as a waiver of any existing claims Cinnabon has against the franchisee who is transferring the franchise. Additionally, Cinnabon's consent to the transfer does not waive Cinnabon's right to demand exact compliance with the terms outlined in the Franchise Agreement.

This means that if a franchisee owes Cinnabon money or has violated the Franchise Agreement in some way prior to the transfer, Cinnabon retains the right to pursue those claims, even after approving the transfer to a new franchisee. The new franchisee is not liable for the previous franchisee's debts or violations, but the original franchisee remains responsible.

This provision protects Cinnabon's interests by ensuring that it does not lose its rights to pursue claims against a transferring franchisee simply by approving the transfer. A prospective Cinnabon franchisee should understand that transferring their franchise does not absolve them of any prior responsibilities or liabilities to Cinnabon. They should resolve any outstanding issues with Cinnabon before initiating a transfer to avoid potential legal complications later.