Does Cinnabon have the right to review the Site Agreement before execution?
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.
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, Cinnabon has the right to review a franchisee's Site Agreement before it is executed. The franchisee must provide Cinnabon with a copy of the signed lease, sublease, or other rental agreement (referred to as the "Lease") or the purchase agreement (referred to as the "Purchase Agreement," and together with the Lease, the "Site Agreement") for the location, ensuring that all material terms are specified.
While Cinnabon has the right to review the Site Agreement to verify its compliance with their requirements, they are not obligated to do so. The responsibility for negotiating the terms of the Site Agreement and fulfilling its obligations rests solely with the franchisee.
This means that a prospective Cinnabon franchisee should carefully consider the terms of their lease or purchase agreement, as Cinnabon's review is primarily to ensure compliance with their standards, and the franchisee is ultimately responsible for the agreement. It is advisable for franchisees to seek legal counsel when negotiating their Site Agreement to ensure their interests are protected.