Under what conditions does the Guarantee of Performance for the Cinnabon franchise continue?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, GoTo Foods Systems LLC, a Delaware limited liability company (the "Guarantor"), located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342, absolutely and unconditionally guarantees to assume the duties and obligations of Cinnabon Franchisor SPV LLC, located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This Guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the Guarantee of Performance provided by GoTo Foods Systems LLC continues until all obligations of Cinnabon Franchisor SPV LLC under its franchise registrations and the Franchise Agreement are satisfied. Alternatively, the guarantee remains in effect until the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
This means that GoTo Foods Systems LLC, as the Guarantor, is committed to ensuring that Cinnabon fulfills its duties and responsibilities to its franchisees. This commitment extends to all aspects of the franchise agreement and franchise registrations. The guarantee remains active as long as any obligations or liabilities exist between Cinnabon and its franchisees.
Importantly, the guarantee is not discharged even if a franchisee has an outstanding claim against Cinnabon. This provides an additional layer of security for franchisees, ensuring that their claims will be addressed even if Cinnabon faces financial difficulties or other challenges. The Guarantor has waived the requirement to receive notice of acceptance of the guarantee but does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on GoTo Foods Systems LLC and its successors and assigns, ensuring long-term accountability.