Under what conditions may Cinnabon or its affiliate lease an SRU to a qualified Cinnabon franchisee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliate, in our or their sole discretion and subject to availability, may lease to qualified franchisees an SRU as an additional selling location within the mall, airport, enclosed building or other retail location where an existing Bakery is located. This lease is controlled by the terms of an SRU Lease Agreement between you and us or our affiliate. See Items 6 and 8.
Source: Item 10 — Financing (FDD page 66)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon or its affiliate may lease a Satellite Retail Unit (SRU) to qualified franchisees under specific conditions. The decision to lease an SRU is at Cinnabon's or its affiliate's sole discretion and depends on the availability of SRUs. These SRUs function as additional selling locations within malls, airports, enclosed buildings, or other retail locations where an existing Cinnabon Bakery is already present.
To be eligible for an SRU lease, franchisees must be deemed 'qualified' by Cinnabon. While the FDD does not explicitly define 'qualified,' Item 1 indicates that as part of the application process, franchisees must complete an application and successfully pass a financial credit check. They may also be asked to successfully complete a test of basic competency in the English language and a criminal background check. Item 1 also states that Cinnabon typically only offers the opportunity to operate an SRU to franchisees after they have operated their Bakery for a period of time.
The lease terms are governed by an SRU Lease Agreement between the franchisee and Cinnabon or its affiliate. The franchisee must purchase or lease the SRU (including the POS System) from Cinnabon, its affiliate, or a third party approved by Cinnabon. The SRU Addendum and SRU Lease Agreement, and your rights to operate and lease the SRU, can be terminated by Cinnabon or its affiliate upon 48 hours' written notice. You may terminate the SRU Addendum and SRU Lease Agreement, and cease operating the SRU, by providing Cinnabon or its affiliate with two weeks' written notice. However, if you terminate the SRU Addendum and SRU Lease Agreement within the first 12 months, you will be responsible for rental payments through the entire 12-month period.