Under what circumstances should a prospective Cinnabon franchisee NOT complete the Franchisee Disclosure Acknowledgement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND, DO NOT SIGN THE ACKNOWLEDGEMENT.
Please review each of the following statements carefully and initial by each providing your acknowledgement that the statement is accurate and true. If you find that a statement is not accurate and true, please cease signing this Acknowledgement and related documents and immediately e-mail Tim Goodman, Senior Vice President of Franchise Administration, at tgoodman@gotofoods.com and provide an explanation of why you believe such statement is not accurate and true.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a prospective franchisee should not sign the Franchisee Disclosure Acknowledgement if the franchise is to be operated in, or if the franchisee is a resident of, Maryland. Additionally, if a prospective franchisee finds that any statement within the Acknowledgement is not accurate or true, they should cease signing the document and immediately contact Cinnabon's Senior Vice President of Franchise Administration, Tim Goodman, via email, providing an explanation for their belief.
This instruction is crucial for potential Cinnabon franchisees because signing the Acknowledgement implies agreement with all its statements. Signing it when the statements are untrue could have legal ramifications. The FDD emphasizes the importance of these acknowledgements to Cinnabon, stating that Cinnabon relies on the accuracy and truthfulness of the statements made within the document.
For franchisees in Maryland, this likely relates to specific state franchise laws. For instance, the Maryland Securities Commissioner requires a financial assurance based on Cinnabon's financial condition, deferring initial fees and payments until pre-opening obligations are met. This suggests that Maryland franchisees have different legal considerations during the franchise process, making the standard acknowledgement inappropriate. Similarly, the Illinois addendum states that Section 21.1 (Your Acknowledgements) is deleted from all Illinois Franchise Agreements.
By providing clear instructions on when not to sign the Acknowledgement, Cinnabon aims to ensure that franchisees are not inadvertently waiving rights or making false representations. This protects both the franchisee and the franchisor from potential future disputes arising from misunderstandings or inaccuracies in the initial agreement.