When transferring any interest in the Cinnabon Agreement or Franchised Business, what simultaneous transfer is required?

According to Cinnabon's 2025 Franchise Disclosure Document, if a franchisee operates an Express Bakery located within a Host Facility that is also a franchise, they cannot transfer their rights or obligations under the Cinnabon Franchise Agreement unless they simultaneously transfer the Host Facility franchise. This transfer must also comply with the franchise agreement governing the Host Facility. This requirement ensures that the Cinnabon Express Bakery remains operational within a properly managed and compliant Host Facility.

This simultaneous transfer requirement is specific to Cinnabon Express Bakeries located within franchised Host Facilities. It means a Cinnabon franchisee in this situation cannot sell or transfer their Cinnabon business without also transferring the Host Facility franchise. This could significantly limit the pool of potential buyers, as someone would need to be qualified and approved to operate both the Cinnabon franchise and the Host Facility franchise.

For a prospective Cinnabon franchisee, this condition adds complexity to any future sale of the business. They would need to find a buyer approved by both Cinnabon and the Host Facility franchisor. This dual approval process could make selling the franchise more difficult and potentially affect the sale price or terms. It is crucial to fully understand the terms of both the Cinnabon Franchise Agreement and the Host Facility franchise agreement before entering into such an arrangement.