What rights does the Guarantor waive against the Franchisee under the Cinnabon Guaranty regarding reimbursement or subrogation?

According to Cinnabon's 2025 Franchise Disclosure Document, the Guarantor waives specific rights against the Franchisee to ensure they are not considered a creditor of the Franchisee under bankruptcy law. This waiver is detailed within the Guaranty agreement, which is a crucial part of the franchise agreement.

Specifically, the Guarantor waives all rights to payments and claims for reimbursement or subrogation that they may have against the Franchisee. This waiver arises from the Guarantor's execution of and performance under the Guaranty. The explicit purpose of this waiver is to prevent the Guarantor from being classified as a "creditor" of the Franchisee under any applicable bankruptcy law concerning the Franchisee's obligations to Cinnabon.

In practical terms, this means that if the Guarantor makes payments or performs obligations on behalf of the Franchisee, they cannot seek direct reimbursement from the Franchisee for those payments or actions. This is designed to protect Cinnabon's interests in the event of the Franchisee's financial distress or bankruptcy, ensuring that Cinnabon's claims take precedence over any claims the Guarantor might have against the Franchisee. Prospective franchisees should carefully review the Guaranty agreement and understand these waivers, as they significantly impact the Guarantor's rights and potential liabilities.