Under what conditions related to terrorist activities can the Cinnabon franchise agreement be terminated?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any violation of the Anti-Terrorism Laws by you or your Owners, or any blocking of your or your Owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement, as provided in Section 17.2.H. (violation of law relating to terrorist activities).
- 20.7 Personal Guaranty.
All Owners must sign the Guaranty of Payment and Performance in Schedule C.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the franchise agreement can be terminated immediately if the franchisee or their owners violate any Anti-Terrorism Laws, or if their assets are blocked under these laws.
The FDD defines "Anti-Terrorism Laws" as Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war.
This clause emphasizes Cinnabon's commitment to complying with anti-terrorism regulations and ensuring that its franchisees also adhere to these laws. For a prospective franchisee, this means undergoing thorough due diligence to ensure that neither they nor their owners are in violation of any anti-terrorism laws. Failure to comply can lead to immediate termination of the franchise agreement, which would result in significant financial and operational losses.