Under what conditions can Cinnabon terminate the SRU Lease Agreement with cause?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the SRU Lease Agreement | Summary |
|---|---|---|
| a. Length of the SRU Lease | 3 | Terminates when lease with landlord terminates or |
| Agreement term | Franchise Agreement terminates | |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to | Not applicable | |
| renew or extend | ||
| d. Termination by franchisee | 14 | You must give two weeks advance written notice. In the event you terminate the SRU Lease Agreement prior to the passage of 12 months, you will be responsible for rental payments for the entire 12 month period. |
| e. Termination by us without cause | 14 | We may terminate the SRU Lease Agreement with 48 hours' written notice. |
| f. Termination by us with cause | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| g. "Cause" defined- curable defaults | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| h. "Cause" defined –non-curable defaults | 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the SRU Lease Agreement. |
| i. Franchisee's obligations on | 14 | Return the SRU to us at your expense |
| termination/non-renewal |
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 SRU (Satellite Retail Unit) Lease Agreement with cause if the franchisee violates any provision of the Franchise Agreement. The FDD specifies that any violation of the Franchise Agreement constitutes a breach of the SRU Lease Agreement, providing Cinnabon grounds for termination. This applies to both curable and non-curable defaults.
This means that a Cinnabon franchisee must adhere strictly to the terms outlined in the Franchise Agreement to avoid potential termination of their SRU Lease Agreement. The franchisee's obligations extend to all aspects of the franchise operation, and any deviation, whether it can be fixed or not, could lead to Cinnabon exercising its right to terminate the lease.
It is important for prospective Cinnabon franchisees to carefully review the Franchise Agreement and understand all its provisions. This will help them ensure compliance and avoid actions that could be construed as a breach, leading to the termination of their SRU Lease Agreement. Franchisees should seek legal counsel to fully understand their obligations and the potential consequences of non-compliance.