When signing the Cinnabon franchise agreement, or if renewing, transferring, or signing a superseding agreement, what type of release must a franchisee sign?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Sign a general release in a form we prepare, releasing us and our parents, subsidiaries, and affiliates and the respective directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, succ
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee may be required to sign a general release under certain circumstances. Specifically, when renewing the franchise agreement, Cinnabon requires franchisees to sign a general release in a form prepared by the company. This release covers Cinnabon and its parents, subsidiaries, affiliates, and their respective directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, successors.
The general release encompasses a broad range of potential claims, including all actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims, and demands whatsoever, in law, admiralty, or equity. This extensive list indicates that Cinnabon aims to protect itself from virtually any type of legal claim that a franchisee might bring.
However, the release includes an important exception: it is not intended as a waiver of rights that cannot be waived under applicable state franchise laws, nor is it intended to relieve Cinnabon from liability imposed by the Maryland Franchise Registration and Disclosure Law. This suggests that while the release is broad, it is also designed to comply with state laws that protect franchisees. A franchisee should carefully review the release and understand its implications, especially concerning their rights under state franchise laws. Franchisees should consult with a legal professional to fully understand the scope and impact of the general release before signing.