What rights does Cinnabon have upon the expiration or termination of a Cinnabon franchisee's Lease?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
(i) a provision which requires the landlord concurrently to provide us with a copy of any written notice of breach or default under the Lease sent to you, and which grants to us the right (but not the obligation) to cure any defaults under the Lease within a reasonable time (not to exceed 15 days for monetary defaults and 30 days for non-monetary defaults);
(ii) a provision that provides that upon the expiration or termination of this Agreement or upon your default under the Lease or under this Agreement, we will, without your or the landlord's further consent, have (a) a continuing right of entry into the Franchised Business, (b) the right to operate a Business at the Accepted Location, (c) the right, but not the obligation, to assume your interests under the existing terms, conditions and covenants of the Lease, and (d) should we assume your position under the Lease, the right to assign the Lease or sublet the premises to a third party which will operate a Business at the location;
(iii) a provision that provides that upon expiration or termination of the Lease, we will, without your or the landlord's further consent, have a continuing right of entry into the Franchised Business to remove Proprietary Products and any materials bearing the Marks;
(iv) a provision that provides that the Lease may not be modified or amended without our written consent which will not unreasonably be withheld, conditioned or delayed by us;
(v) a provision that allows you to offer or distribute product samples outside or over the counter of the Franchised Business, as applicable;
(vi) a provision that provides that if we assume your obligations and replace you as the lessee under the Lease or sign a new lease, and we later reassign the Lease or new lease to another franchisee, we will not be liable for any obligations to landlord under the Lease or new lease after the reassignment;
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon seeks to secure certain rights related to the lease of the franchise location. Cinnabon requires franchisees to use commercially reasonable efforts to ensure that all leases include specific provisions that protect Cinnabon's interests. These provisions primarily concern Cinnabon's ability to step in and continue operations at the location under certain circumstances.
Specifically, Cinnabon wants leases to include a clause that grants them a continuing right of entry into the franchised business upon the expiration or termination of the Franchise Agreement or upon the franchisee's default under the lease or Franchise Agreement. This allows Cinnabon to operate a Cinnabon business at the location. Cinnabon also seeks the right, but not the obligation, to assume the franchisee's interests under the existing lease terms. If Cinnabon assumes the lease, it also wants the right to assign the lease or sublet the premises to a third party who will operate a Cinnabon business at the location.
Additionally, Cinnabon aims to secure the right to enter the franchised business to remove proprietary products and materials bearing Cinnabon's trademarks upon the expiration or termination of the lease. Cinnabon also requires that the lease cannot be modified or amended without Cinnabon's written consent, which Cinnabon states it will not unreasonably withhold, condition, or delay. These stipulations ensure Cinnabon can maintain control over the location and brand representation even if the original franchisee is no longer operating the business. Finally, Cinnabon wants assurance that if it assumes the lease and later reassigns it to another franchisee, Cinnabon will not be liable for any obligations to the landlord after the reassignment.