Under what conditions can a Cinnabon franchisee assign or sublet the Site Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you execute a Site Agreement, (i) you may not create any obligations on our behalf, grant any rights adverse to our rights, or agree to any other term that is inconsistent with any term of this Agreement; (ii) you must duly and timely perform all terms under the Site Agreement; and (iii) except as otherwise provided in this Agreement, you may not assign, encumber, or transfer the Site Agreement, or sublet all or any part of the Accepted Location, without our prior written approval, which approval will not be unreasonably withheld.
You must ensure that all Site Agreements comply with any terms set forth in the Manuals.
- E.
Subleases.
We reserve the right, directly or through an affiliate, to master lease any location and then sublet the location to you.
Concurrently, with the execution of the Franchise Agreement, you may enter into a sublease with us if an acceptable site has been identified and we are or will be the master lessee of such site.
If we and you are parties to a sublease and we elect to assign the master lease to you, you must execute any and all documents required by the landlord to facilitate such assignment and cooperate with our efforts to obtain our release.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a franchisee cannot assign, encumber, or transfer the Site Agreement, or sublet all or any part of the Accepted Location, without Cinnabon's prior written approval. This approval will not be unreasonably withheld. The franchisee must also ensure that all Site Agreements comply with any terms set forth in the Manuals.
This restriction is typical in franchising, as it allows Cinnabon to maintain control over the locations where its franchises operate. This control helps ensure brand consistency and protects the overall network. By requiring written approval for any assignment or subletting, Cinnabon can vet potential new operators and ensure they meet the company's standards.
However, Cinnabon also reserves the right, directly or through an affiliate, to master lease any location and then sublet the location to the franchisee. Concurrently with the execution of the Franchise Agreement, a franchisee may enter into a sublease with Cinnabon if an acceptable site has been identified and Cinnabon is or will be the master lessee of such site. If Cinnabon and the franchisee are parties to a sublease and Cinnabon elects to assign the master lease to the franchisee, the franchisee must execute any and all documents required by the landlord to facilitate such assignment and cooperate with Cinnabon's efforts to obtain their release.
Prospective franchisees should carefully review the Manuals and the Franchise Agreement to fully understand the conditions under which assignment or subletting may be permitted. It is also advisable to discuss specific circumstances with Cinnabon during the due diligence process to clarify any potential issues.