Under what circumstances will the Cinnabon SRU agreement terminate?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall be effective and binding from the date of execution and shall terminate upon the earlier of (i) the expiration or termination of the Lease Agreement; (ii) the expiration or termination of the Franchise Agreement and/or the SRU Addendum; or (iii) the termination of this Agreement pursuant to Section 14 below.
Notwithstanding anything to the contrary contained in this Agreement, Lessor may terminate this Agreement upon 48 hours' written notification to Lessee for any reason. Lessee's right to operate an SRU is contingent upon Lessee remaining in compliance with the terms of the Franchise Agreement and Manuals. Notwithstanding anything to the contrary contained herein, Lessor may terminate this Agreement and recover the SRU immediately and without advance notice, if Lessee defaults under the Franchise Agreement or any other agreement between Lessee and Franchisor or its affiliates and such default is non-curable or, if such default is curable, Lessee fails to cure such default within the applicable cure period.
Lessee may terminate this Agreement upon two weeks' advance written notice to Lessor.
If this Agreement is terminated prior to the first anniversary of the Commencement Date, Lessee must pay Lessor the Maximum Monthly Rental Fee for each month (or portion of a month) between the date of termination and the first anniversary of the Commencement Date.
In the event of termination, the SRU must be returned to Lessor or Lessor's designee in a manner designated by Lessor. Lessee shall be liable for all costs incurred
in shipping the SRU to its prescribed destination. Lessee shall be required to pay Lessor's direct expenses in disassembling and removing the SRU from the Location. Such expenses shall be at Lessor's then-current daily training service fee.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the SRU (Satellite Retail Unit) Agreement can terminate under several circumstances. The agreement terminates upon the earliest of (i) the expiration or termination of the Lease Agreement; (ii) the expiration or termination of the Franchise Agreement and/or the SRU Addendum; or (iii) the termination of this Agreement pursuant to Section 14.
Specifically, Cinnabon may terminate the SRU Agreement with a 48 hours' written notification to the franchisee for any reason. Cinnabon can also terminate the agreement immediately and recover the SRU without advance notice if the franchisee defaults under the Franchise Agreement or any other agreement with Cinnabon and the default is non-curable. If the default is curable, Cinnabon may terminate if the franchisee fails to cure the default within the applicable cure period.
The franchisee also has termination options. The franchisee may terminate the SRU Agreement by providing Cinnabon with two weeks' advance written notice. However, if the franchisee terminates the agreement before the first anniversary of the Commencement Date, they must pay Cinnabon the Maximum Monthly Rental Fee for each month (or portion of a month) between the termination date and the first anniversary of the Commencement Date. If the agreement is terminated, the SRU must be returned to Cinnabon, and the franchisee is responsible for all shipping costs and Cinnabon's expenses in disassembling and removing the SRU from the Location.