What rights does Cinnabon have upon expiration or termination of the Lease?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
(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;
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 premises where a franchise operates. Specifically, Cinnabon aims to have the right to continue operating a business at the location even after the franchisee's agreement expires or is terminated. This includes the right to assume the franchisee's interests under the existing lease terms without needing consent from the franchisee or landlord.
Furthermore, Cinnabon wants the ability to assign the lease or sublet the premises to another party who will operate a Cinnabon business at that location. This provision ensures that Cinnabon can maintain a presence in a particular market even if the original franchisee is no longer operating the business. Cinnabon also wants the right to enter the premises after the lease expires or terminates to remove any proprietary products or materials bearing Cinnabon trademarks.
These rights are important for Cinnabon as they provide flexibility and control over the locations of their franchises. By securing these rights in the lease agreement, Cinnabon can protect its brand and ensure continuity of operations. For a prospective franchisee, this means that Cinnabon has a vested interest in the location of their business and may step in to take over the lease if the franchisee defaults or the agreement is terminated. It is also important to note that Cinnabon requires that the lease cannot be modified or amended without their written consent.