Under what legal provisions can a franchisee terminate the Cinnabon Franchise Agreement, as stated in the amendment to Section 17.1?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following language replaces the "Summary" section of Item 17(d), titled "Termination by franchisee":
You may terminate the Franchise Agreement on any grounds available by law.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the Illinois Addendum modifies Item 17 regarding termination rights for franchisees in Illinois. Specifically, it states that a Cinnabon franchisee may terminate the Franchise Agreement on any grounds available by law. Furthermore, Illinois law, specifically 815 ILCS §§ 705/19 and 705/20, may affect the terms and conditions under which Cinnabon may terminate the franchise and the franchisee's rights upon non-renewal.
This means that Illinois franchisees have the right to terminate their agreements based on any legal grounds recognized in the state. The Illinois Franchise Disclosure Act aims to protect franchisees by ensuring that the agreement adheres to Illinois law, especially concerning termination and non-renewal. The FDD also states that any provision in the Franchise Agreement designating jurisdiction and venue outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois.
Prospective Cinnabon franchisees in Illinois should consult with legal counsel to fully understand their termination rights and how Illinois law protects them under the Franchise Agreement. This is particularly important because the standard agreement might contain clauses that are unenforceable under Illinois law, and the franchisee needs to be aware of these protections.