Under what circumstances would a State Law Addendum be included as Schedule D to the Cinnabon Franchise Agreement?

According to the 2025 Cinnabon Franchise Disclosure Document, a State Law Addendum is included as Schedule D to the Cinnabon Franchise Agreement if required. This addendum modifies the franchise agreement to comply with specific state franchise laws. For example, the FDD includes a California Addendum to Franchise Agreement in recognition of the requirements of the California Franchise Investment Law and the California Franchise Relations Act.

Several states, such as Maryland, Minnesota, Illinois, Indiana, North Dakota, Rhode Island, and Washington, require specific addenda to the disclosure document or franchise agreement to address their franchise laws. These addenda can modify various aspects of the franchise agreement, including initial fees, termination and renewal conditions, dispute resolution, and governing law.

For a prospective Cinnabon franchisee, this means that the terms of the franchise agreement may vary depending on the state in which the franchise is located. It is important to carefully review the State Law Addendum, if any, to understand how state law affects the franchisee's rights and obligations. Franchisees should pay close attention to provisions regarding termination, renewal, transfer, dispute resolution, and any waivers of rights, as these may be impacted by state-specific regulations.

For instance, the New York Addendum to the Franchise Agreement states that the franchisor may negotiate with a prospective franchisee about items covered in the Franchise Disclosure Document, but cannot use the negotiating process to prevail upon a prospective franchisee to accept terms which are less favorable than those set forth in the Franchise Disclosure Document. Similarly, the North Dakota Addendum to Disclosure Document states that a contractual requirement that you sign a general release will not apply to claims you may have under the North Dakota Franchise Investment Law.