Where must suits be filed according to the Cinnabon franchise agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | Summary | |
|---|---|---|---|
| SRU Lease Agreement | |||
| j. Assignment of contract by us | Not applicable | ||
| k. “Transfer” by franchisee-defined | 17 | Any sale, transfer, assignment, etc. of all or part of a franchisee’s ownership interest. | |
| l. Our approval of transfer by | 17 | Any transfer must be approved by us | |
| franchisee | |||
| m. Conditions for our approval of | Not applicable | ||
| transfer | |||
| n. Our right of first refusal to | Not applicable | ||
| acquire franchisee’s business | |||
| o. Our option to purchase | Not applicable | ||
| franchisee’s business | |||
| p. Death or disability of franchisee | Not applicable | ||
| q. Non-competition covenants | Not applicable | ||
| during the term of the franchise | |||
| r. Non-competition covenants after | Not applicable | ||
| the franchise is terminated or | |||
| expires | |||
| s. Modification of the agreement | Not applicable | ||
| t. Integration/merger clause | Not applicable | ||
| u. Dispute resolution by | 19 | Most disputes must be resolved by arbitration | |
| arbitration or mediation | |||
| v. Choice of forum | 19 | Suits must be filed in Fulton County, Georgia, the Northern District of Georgia, or any other court where our principal place of business is located |
Source: Item 19 — Financial Performance Representations (FDD pages 100–104)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, any lawsuits must be filed in specific locations. The FDD states that suits must be filed in Fulton County, Georgia; the Northern District of Georgia; or any other court where Cinnabon's principal place of business is located.
This "choice of forum" clause is a standard legal provision in franchise agreements. It dictates the specific jurisdiction where any legal disputes between the franchisee and Cinnabon must be initiated and resolved. This clause ensures that Cinnabon can manage legal challenges in a location convenient for them, which is typically near their headquarters.
For a prospective Cinnabon franchisee, this means that if a dispute arises that leads to a lawsuit, they may be required to travel to Georgia to pursue their legal claims, regardless of where their franchise is located. This could potentially increase the cost and complexity of any legal action against the franchisor. Franchisees should consider this factor and consult with a legal professional to understand the implications of this clause before signing the franchise agreement.