When transferring interest in a Cinnabon franchise, what approvals and payments are required beyond Cinnabon's standard transfer procedures?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you may not Transfer any interest in the Agreement or in the Franchised Business unless you simultaneously transfer to the same third-party transferee the same interest in your Co-Branded Franchisor or in your Co-Branded Franchise, as the case may be. You acknowledge that you will have to satisfy the transfer procedures for both us (as set forth in this Agreement) and the Co-Branded Franchisor (as set forth in your Co-Branded Agreement), including the right to approve the Transfer and the proposed transferees and payment of any transfer fees due under each agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, if you operate a co-branded franchise, transferring your interest involves additional steps beyond Cinnabon's standard transfer procedures. Specifically, you must simultaneously transfer your interest in the co-branded franchise to the same third-party transferee. This means that the person or entity buying your Cinnabon franchise must also acquire your interest in the other brand.
Furthermore, the FDD states that you must satisfy the transfer procedures for both Cinnabon and the co-branded franchisor. This includes obtaining approval from both franchisors for the transfer and the proposed transferees. Additionally, you're responsible for paying any transfer fees due under each franchise agreement. This implies increased complexity and costs compared to transferring a single-brand Cinnabon franchise.
In summary, if you have a co-branded Cinnabon franchise, be prepared for a more involved transfer process. You'll need to coordinate with both Cinnabon and the other franchisor, meet both sets of requirements, and potentially pay double the transfer fees. Prospective franchisees should carefully review the transfer sections of both franchise agreements to fully understand these obligations.