For a Cinnabon SRU, who owns the intellectual property rights to any modifications made to the SRU?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ovided to the Lessee from time to time by Lessor and Franchisor. Lessee shall be responsible for cleaning and maintaining the SRU. At all times, Lessee shall keep the SRU in good working order and repair. The expense of all ordinary maintenance and repair of the SRU due to normal wear and tear shall be borne by Lessor. The expense of extraordinary maintenance and repair
of the SRU due to a relocation of the SRU, damage to the Location or to the SRU, or to any other cause beyond the control of Lessor shall be borne by Lessee.
- b. Lessor is not obligated to maintain, repair, service, replace, operate or assure the operation of any device, system or property belonging to any third party that is associated with the SRU. Lessor is not responsible for any costs associated with the installation, setup and maintenance of the SRU, including, without limitatio
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, any changes or modifications to the Satellite Retail Unit (SRU) that are not required by the franchisor must be approved in advance by Cinnabon. The franchisee is responsible for the costs associated with making these modifications and restoring the SRU to its original condition if necessary.
Importantly, any such changes become part of the SRU, and the franchisee is not entitled to remove them or receive compensation for them. Cinnabon retains ownership of the intellectual property rights to any modifications, including related designs.
This means that while a Cinnabon franchisee can suggest and implement modifications to their SRU with Cinnabon's approval, Cinnabon will own the rights to those modifications. If the agreement is terminated before the fourth anniversary of the commencement date, the franchisee is responsible for reimbursing Cinnabon for the cost of restoring the SRU to its pre-modified condition. The current cost estimate for modification, restoration, and/or build out is not specified in this document.