Is there a Personal Covenants schedule included in the Cinnabon Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 22
CONTRACTS
The following contracts and related documents are attached to this Disclosure Document:
EXHIBIT B CINNABON FRANCHISE AGREEMENT AND RELATED AGREEMENTS:
Schedule A - Franchise Specific Terms
Schedule B - Personal Covenants
Schedule C - Guaranty of Payment and Performance Schedule D - State Law Addendum (If Required)
Schedule E - Multi-Unit Addendum
Source: Item 22 — Contracts (FDD pages 113–114)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Schedule B of the Cinnabon Franchise Agreement is the Personal Covenants agreement. This schedule requires all individuals with an equity interest in the franchisee to sign, binding them to certain obligations.
The Personal Covenants agreement ensures that these individuals are personally bound by the confidentiality and restrictive covenants outlined in Section 15 of the Franchise Agreement. This means that equity holders are legally responsible for upholding these specific obligations as if they were directly contracting with Cinnabon.
Cinnabon requires this agreement to protect its confidential information and trade secrets, as well as to enforce non-compete restrictions. By having all equity holders sign the Personal Covenants, Cinnabon aims to prevent these individuals from disclosing sensitive information or engaging in activities that could harm the franchise system, even if they are not directly involved in the day-to-day operations of the franchise. This is a common practice in franchising to ensure broader protection of the franchisor's interests.