Under what grounds can a Cinnabon franchisee terminate the franchise agreement under state law?

According to the 2025 Cinnabon Franchise Disclosure Document (FDD), a franchisee's right to terminate the franchise agreement is determined by applicable state laws. Specifically, the FDD states that a franchisee may terminate the Franchise Agreement on any grounds available by law. This means that the specific reasons and procedures for termination can vary depending on the state in which the franchise operates.

For instance, the Illinois Addendum to the FDD clarifies that the terms and conditions under which Cinnabon may terminate the franchise and the franchisee's rights on non-renewal may be affected by Illinois law. It also states that Illinois law will govern the Franchise Agreement with respect to franchisees under the jurisdiction of the Illinois Franchise Disclosure Act, and any provision designating jurisdiction and venue outside of Illinois is void for causes of action enforceable in Illinois. Similarly, the New York Addendum ensures that all rights enjoyed by the franchisee and any causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York remain in force.

In Indiana, the laws of the State of Indiana supersede any conflicting provisions in the Franchise Agreement or other agreements. Furthermore, Indiana law prohibits the unilateral termination of the franchise by Cinnabon without good cause or in bad faith, defining good cause as a material breach of the franchise agreement. Therefore, a Cinnabon franchisee needs to consult the specific franchise laws of their state to understand their rights and grounds for terminating the franchise agreement.