Does Cinnabon have the right to review a franchisee's Site Agreement before it is executed?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with this Section 5.4.
- B.
Site Agreement Restrictions.
If you execute a Site Agreement, (i) you may not create any obligations on our behalf, grant any rights adverse to our rights, or agree to any other term that is inconsistent with any term of this Agreement; (ii) you must duly and timely perform all terms under the Site Agreement; and (iii) except as otherwise provided in this Agreement, you may not assign, encumber, or transfer the Site Agreement, or sublet all or any part of the Accepted Location, without our prior written approval, which approval will not be unreasonably withheld.
You must ensure that all Site Agreements comply with any terms set forth in the Manuals.
- D.
Site Agreement Modifications.
You must submit a copy of any proposed modification, amendment, or renewal of the Site Agreement (a "Site Agreement Change") (along with a true and complete copy of the then-existing Site Agreement) to us for our review and approval prior to executing such documents, not less than 10 days prior to the proposed effective date of such modification, amendment, or renewal.
Our review of the proposed Site Agreement Change will be limited to ensuring that it is compliant with the terms of this Agreement.
Our acceptance of the Site Agreement Change shall not be unreasonably withheld and may be conditioned upon the inclusion of terms in the Site Agreement acceptable to us, including those provisions as specified in Section 5.4.C. (Preferred Lease Terms).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon has the right, but not the obligation, to review a franchisee's Site Agreement before it is executed. This review is to verify the agreement's compliance with the requirements outlined in Section 5.4 of the Franchise Agreement.
Before signing a Site Agreement, a Cinnabon franchisee must ensure that it meets the requirements of Section 5.4. If a franchisee executes a Site Agreement, they cannot create any obligations on Cinnabon's behalf, grant any rights adverse to Cinnabon's rights, or agree to any term inconsistent with the Franchise Agreement. The franchisee must also perform all terms under the Site Agreement duly and timely. Without prior written approval from Cinnabon, the franchisee cannot assign, encumber, or transfer the Site Agreement, or sublet all or any part of the accepted location, except as otherwise provided in the Franchise Agreement.
Furthermore, franchisees must submit any proposed modification, amendment, or renewal of the Site Agreement to Cinnabon for review and approval at least 10 days before the proposed effective date. Cinnabon's review of these changes is limited to ensuring compliance with the terms of the Franchise Agreement. Cinnabon's acceptance of the Site Agreement change will not be unreasonably withheld and may be conditioned upon the inclusion of terms acceptable to Cinnabon, including those specified in Section 5.4.C (Preferred Lease Terms).