Under what condition related to a Co-Branded Agreement will Cinnabon terminate the franchise agreement without an opportunity to cure?

According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon may terminate a franchise agreement without providing an opportunity to cure if the franchisee's Co-Branded Agreement terminates or expires. This also applies if the franchisee, for any other reason, ceases to operate the Co-Branded Franchise at the Accepted Location. This condition is outlined in Section 17.2.M, which amends Section 17.2 of the franchise agreement.

This stipulation is significant for prospective Cinnabon franchisees considering a co-branded location, as it directly links the Cinnabon franchise's viability to the status of the co-branded business. If the co-branded franchise agreement with, for example, Carvel, ends for any reason, the Cinnabon franchise can be terminated without an opportunity to rectify the situation. This creates a dependency where the Cinnabon franchisee must ensure the co-branded business remains operational and in compliance with its own franchise agreement to maintain their Cinnabon franchise.

This type of clause is not uncommon in co-branding franchise arrangements, as each brand's performance and adherence to standards can impact the other. Cinnabon aims to protect its brand by ensuring that its co-branded locations maintain operational consistency and uphold the standards of their partner franchise. Franchisees should carefully review the terms of both franchise agreements to understand their obligations and the potential consequences of non-compliance or termination of either agreement.

Prospective franchisees should seek clarification from Cinnabon regarding the specific circumstances that could lead to the termination or expiration of the Co-Branded Agreement. Understanding the relationship between the two franchise agreements is crucial for assessing the risks and responsibilities associated with operating a co-branded Cinnabon franchise.