Under what circumstances can the Cinnabon franchisee assign the Service Level Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly provided herein, this Agreement may not be assigned by Franchisee without Company's prior written consent including assignment by operation of law and change of control.
Any attempted assignment of this Agreement in violation of the preceding sentence will be null and void ab initio.
In the event Franchisee sells or transfers the Franchised Business, this Agreement shall terminate and the transferee shall be required to execute Company's then-current form of Service Level Agreement.
In the event of an assignment of the Franchise Agreement which has been approved by Franchisor, this Agreement shall be deemed to be assigned to the assignee of the Franchise Agreement and such assignee shall be deemed to have assumed all rights and obligations of Franchisee under this Agreement.
Company may assign this Agreement to any person or entity without Franchisee consent.
This Agreement will be binding on and inure to the benefit of the parties and their respective successors and permitted assigns.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee cannot assign the Service Level Agreement without the company's prior written consent. This restriction includes assignments that occur through operation of law or a change of control. If a franchisee attempts to assign the agreement without the required consent, the assignment will be considered null and void from the beginning.
However, there are specific circumstances under which the Service Level Agreement can be transferred. If the Cinnabon franchisee sells or transfers their franchised business, the existing Service Level Agreement will terminate. The new owner or transferee will then be required to execute Cinnabon's current form of the Service Level Agreement. Additionally, if the Cinnabon franchisor approves an assignment of the Franchise Agreement itself, the Service Level Agreement will be automatically assigned to the same assignee. In this case, the assignee is considered to have assumed all the franchisee's rights and obligations under the Service Level Agreement.
It is important to note that Cinnabon (referred to as "Company" in the Service Level Agreement) retains the right to assign the Service Level Agreement to any person or entity without needing the franchisee's consent. This clause ensures Cinnabon has the flexibility to manage its support services as it sees fit. The Service Level Agreement is binding on all parties and their respective successors and permitted assignees, ensuring continuity of service and obligations.
This section clarifies the conditions under which the Service Level Agreement can be assigned, providing clarity for both the franchisee and Cinnabon. Franchisees need to be aware of these conditions, especially when considering selling their business or transferring their Franchise Agreement. The requirement for the transferee to execute the current Service Level Agreement ensures that the standards and terms remain consistent with Cinnabon's current policies.