Under what conditions will Cinnabon automatically withhold consent for a transfer?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
r to occur without obtaining our prior written consent. Any purported Transfer, without our prior written consent, will be null and void and will constitute a default under this Agreement, for which we may terminate this Agreement without opportunity to cure.
- A. Requesting Consent. If you or any of your Owners desire to make a Transfer, you must promptly provide us with written notice. You agree to provide any information and documentation relating to the proposed Transfer that we reasonably require. We have the right to communicate with both you, your counsel, and the proposed transferee on any aspect of a proposed Transfer. No Control Transfer may be completed until at least 60 days after we receive all requested information to evaluate the proposed Control Transfer. No other Transfer may be completed until at least 30 days after we receive all requested information to evaluate such proposed Transfer.
- B. Granting Consent. We have sole and absolute discretion to withhold our consent, except as otherwise provided in Sections 16.4 through 16.7. Without limiting the foregoing, we will not consent to a Transfer, and we are under no obligation to do so, if (i) your Franchised Business is not open and operating; or (ii) the Transfer would cause a transferee or its owners to breach another agreement (whether or not with us).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon has sole and absolute discretion to withhold consent for a transfer, except as otherwise provided in Sections 16.4 through 16.7. Cinnabon will not consent to a transfer if the Franchised Business is not open and operating, or if the transfer would cause a transferee or its owners to breach another agreement, whether or not with Cinnabon.
For a Control Transfer, Cinnabon may specify conditions and has sole and absolute discretion to grant or withhold consent. At a minimum, the following conditions must be satisfied unless waived by Cinnabon: You must notify Cinnabon in writing at least 90 days prior to any proposed Control Transfer and provide all requested information at least 60 days prior to any proposed Control Transfer. All sums you owe Cinnabon and its affiliates must be paid.
Cinnabon may withhold consent on any reasonable grounds or give consent subject to reasonable conditions. If you operate an Express Bakery located in a Host Facility and your Host Facility is a franchise, you may not Transfer any of your rights or obligations under this Agreement unless you also transfer the Host Facility in compliance with any franchise agreement for the Host Facility.