Under what circumstances can Cinnabon terminate the Support Services Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Period), if we do not exercise our right to terminate the Agreement, we may, at our sole election and upon delivery of written notice to you, take any or all of the following actions:
- A. Suspend your access and use of the System or our websites (including your access or use of website pages), our applications, or our online ordering platforms;
- B. Suspend your or the Franchised Business's participation in any programs or benefits we offer, including any programs or benefits that are funded by Advertising Contributions;
- C. Suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement;
- D. Suspend or terminate any temporary or permanent fee reductions to which we might have agreed (whether as a policy, in an amendment to this Agreement, or otherwise);
- E. Suspend our performance of, or compliance with, any of our obligations to you under this Agreement or other agreements; and/or
- F. Undertake or perform on your behalf any obligation or duty that you are required to, but fail to, perform under this Agreement. You will reimburse us upon demand for all costs and expenses that we or our affiliates reasonably incur in performing any such obligation or duty.
- 17.6 Exercise of Other Remedies. Our exercise of our rights under Section 17.4 (Suspension of Rights After Your Default) and 17.5 (Other Remedies After Your Default) will not (i) be a defense for you to our enforcement of any other provision of this Agreement or waive or release you from any of your other obligations under this Agreement, (ii) be a defense at law or equity based on impossibility of your performance or any claim against us or our Approved Suppliers. (iii) constitute an actual or constructive termination of this Agreement, or (iv) be our sole or exclusive remedy for your default. You must continue to pay all fees and otherwise comply with all of your obligations under this Agreement following our exercise of any of these rights. If we exercise any of our rights under Section 17.5, we may thereafter terminate this Agreement without providing you any additional corrective or cure period, unless the default giving rise to our right to terminate this Agreement has been cured to our reasonable satisfaction.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
Based on the 2025 Cinnabon Franchise Disclosure Document, Section 17.5 outlines the circumstances under which Cinnabon can terminate the Support Services Agreement. If Cinnabon does not exercise its right to terminate the agreement following a default, it retains the option to take actions such as suspending access to systems, websites, applications, or online ordering platforms. Cinnabon can also suspend participation in programs or benefits, including those funded by advertising contributions, and suspend other services provided under the agreement or any other agreement.
Furthermore, Cinnabon can suspend or terminate any temporary or permanent fee reductions and suspend its own performance or compliance with obligations to the franchisee. Cinnabon also has the right to undertake or perform any obligation or duty on behalf of the franchisee if the franchisee fails to do so, with the franchisee responsible for reimbursing all associated costs and expenses.
According to Section 17.6, Cinnabon's exercise of these rights does not prevent them from enforcing other provisions of the agreement, nor does it act as a waiver of the franchisee's obligations. The franchisee must continue to pay all fees and comply with all obligations. Importantly, if Cinnabon exercises any of its rights under Section 17.5, it may subsequently terminate the agreement without providing any additional corrective or cure period, unless the initial default has been resolved to Cinnabon's satisfaction. This means a franchisee could face termination without further chances to correct the issue if Cinnabon has already taken other remedial actions following a default.