Under what conditions can Cinnabon terminate the SRU Addendum for a curable default?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
se is terminated or | | | | expires | | | | s. Modification of the agreement | Not applicable | | | t. Integration/merger clause | Not applicable | | | u. Dispute resolution by | 19 | | | arbitration or mediation | | | | v. Choice of forum | 19 | | | | | | | | | | | w. Choice of law | 20 | | | | Provisions | Section in Franchise Agreement | | t. | Integration/ merger clause | FA: 22.2 | | u. | Dispute resolution by arbitration or mediation | FA: 19.1 | | v. | Choice of forum | FA: 19.1 | | | w. Choice of law | FA: 15.6 and 22.5 |
SATELLITE RETAIL UNIT ADDENDUM
| 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. Termin |
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, the SRU Addendum can be terminated for any violation of the Franchise Agreement, as any such violation constitutes a breach of the SRU Addendum. This applies to both curable and non-curable defaults.
In practical terms, this means that if a Cinnabon franchisee operating under an SRU Addendum fails to correct a breach of the Franchise Agreement after being given the opportunity to do so, Cinnabon has grounds to terminate the SRU Addendum. The FDD does not specify a timeframe or procedure for curing defaults, but it is important to note that any violation, regardless of whether it is curable, can trigger termination.
This policy underscores the importance of strict compliance with the Franchise Agreement for Cinnabon franchisees. While the ability to cure a default might seem to offer some protection, the fact that any violation can be considered a breach of the SRU Addendum means that franchisees must be diligent in adhering to all terms and conditions of the Franchise Agreement to avoid potential termination of the SRU Addendum.