Under what conditions does Cinnabon agree to reimburse the franchisee for all expenses reasonably incurred, including attorneys' fees?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to reimburse us for all expenses we reasonably incur (including attorneys' fees): (i) to enforce the terms of this Agreement or any obligation owed to us by you and/or the Owners (whether or not we initiate a legal proceeding, unless we initiate and fail to substantially prevail in such court or formal legal proceeding); and (ii) in the defense of any claim you and/or the Owners assert against us on which we substantially prevail in court or other formal legal proceedings. We agree to reimburse you for all expenses you reasonably incur (including attorneys' fees): (a) to enforce the terms of this Agreement or any obligation owed to you by us (whether or not you initiate a legal proceeding, unless you initiate and fail to substantially prevail in such court or formal legal proceeding); and (b) in the defense of any claim we assert against you on which you substantially prevail in court or other formal legal proceedings.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon will reimburse a franchisee for all expenses reasonably incurred, including attorneys' fees, under specific circumstances related to legal proceedings.
Specifically, Cinnabon agrees to reimburse the franchisee for all expenses reasonably incurred, including attorneys' fees, to enforce the terms of the Franchise Agreement or any obligation owed to the franchisee by Cinnabon, whether or not the franchisee initiates a legal proceeding, unless the franchisee initiates and fails to substantially prevail in such court or formal legal proceeding. Additionally, Cinnabon will reimburse the franchisee for all expenses reasonably incurred, including attorneys' fees, in the defense of any claim Cinnabon asserts against the franchisee on which the franchisee substantially prevails in court or other formal legal proceedings.
This means that if a franchisee has to take legal action to enforce the franchise agreement against Cinnabon, or if Cinnabon sues the franchisee and the franchisee wins, Cinnabon will cover the franchisee's reasonable expenses, including attorney fees. However, if the franchisee initiates legal action and does not win substantially, Cinnabon is not obligated to cover those expenses. This provision aims to protect franchisees from bearing legal costs when they are either enforcing their rights against Cinnabon or successfully defending themselves against claims made by Cinnabon.