Under what conditions can Cinnabon terminate the MUA Franchise Agreements?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Termination of MUA Franchise Agreements. If you (i) fail to comply with any of the deadlines set forth in the Development Schedule and we have not granted an extension of such deadline(s) or (ii) any other agreement between you and us or our affiliates is terminated, we may, in our sole discretion, terminate this Addendum and/or any or all of the remaining MUA Franchise
Agreements for which you have not yet opened a MUA Business. For the avoidance of doubt, if you fail to comply with any of the deadlines set forth in the Development Schedule, such default shall not be grounds for us to terminate any MUA Franchise Agreements that are in effect for Franchised Businesses that are already open and operating at the time of such default.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, Cinnabon can terminate the MU Addendum and/or any or all of the remaining MUA Franchise Agreements under specific conditions. These conditions include if the franchisee fails to comply with any of the deadlines outlined in the Development Schedule, and Cinnabon has not granted an extension for those deadlines.
Another condition that allows Cinnabon to terminate the MUA Franchise Agreements is if any other agreement between the franchisee and Cinnabon or its affiliates is terminated. Cinnabon has the sole discretion to decide whether to terminate the addendum and/or any of the remaining MUA Franchise Agreements under these circumstances.
It is important to note that the initial franchise fees are non-refundable, even if the addendum or any of the MUA Franchise Agreements are terminated, or if the franchisee fails to develop one or more of the MUA Businesses. This addendum also states that failure to comply with deadlines in the Development Schedule is not grounds to terminate MUA Franchise Agreements for Franchised Businesses that are already open and operating.