Under what conditions can Cinnabon terminate the Satellite Retail Unit Addendum for a breach of the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the SRU Addendum | Summary |
|---|---|---|
| a. Length of the SRU Addendum term | Not applicable | Length of term is dependent on Franchise Agreement term. |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to | Not applicable | |
| renew or extend | ||
| d. | 15 | You must give us 14 days' advance written notice. |
| Termination by franchisee | ||
| e. Termination by us without cause | 15 | We may terminate the SRU Addendum with 48 hours' prior written notice to you for any reason. |
| f. Termination by us with cause | 13 and 14 | We may terminate the SRU Addendum for any breach of the SRU Addendum or the Franchise Agreement. |
| g. "Cause" defined- curable defaults | 13 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Addendum. |
| h. "Cause" defined –non-curable defaults | 13 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Addendum. |
| i. Franchisee's obligations on | Not applicable | |
| termination/non-renewal | ||
| j. Assignment of contract by us | Not applicable | |
| k. | Not applicable | |
| "Transfer" by franchisee-defined | ||
| a.Our approval of transfer by | Not applicable | |
| franchisee | ||
| m. Conditions for our approval of | Not applicable | |
| transfer |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 93–100)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon can terminate the Satellite Retail Unit (SRU) Addendum if the franchisee breaches either the SRU Addendum itself or the overarching Franchise Agreement. The FDD specifies that any violation of the Franchise Agreement's provisions is considered a breach of the SRU Addendum. This means Cinnabon has broad authority to terminate the SRU Addendum if a franchisee fails to comply with any aspect of the Franchise Agreement.
This termination clause is significant for prospective franchisees as it links the SRU Addendum's fate directly to compliance with the Franchise Agreement. Franchisees must understand all obligations under the Franchise Agreement, as any misstep could lead to the termination of their SRU Addendum. This conditionality adds a layer of risk, as the SRU operation is dependent not only on its own terms but also on the comprehensive adherence to the broader Franchise Agreement.
It is common in franchising for addenda or supplemental agreements to be tied to the main franchise agreement, but franchisees should carefully review the specific termination clauses to understand the full scope of potential violations that could trigger termination. Cinnabon franchisees should seek legal counsel to fully understand their obligations under both the Franchise Agreement and the SRU Addendum to minimize the risk of inadvertent breaches leading to termination.