Under what public health or safety circumstances can Cinnabon terminate the franchise agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- K.
You operate your Franchised Business in any manner that we determine in our reasonable discretion poses a threat or danger to public health or safety, including, without limitation, if a public official requires you to close your Franchised Business as a result of your violation of any Laws relating to public health or safety.
- B. 24 hours after we send you a notice of default, you fail to cure a default related to any dilution or adulteration of Approved Products or any misrepresentation, substitution, or palming off of unapproved products from the Franchised Business.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon can terminate the franchise agreement if the franchisee operates the business in a manner that poses a threat or danger to public health or safety. This includes situations where a public official requires the franchisee to close the Franchised Business due to violations of laws relating to public health or safety.
In such cases, Cinnabon has the right to terminate the agreement. However, Cinnabon must first send a notice of default to the franchisee, allowing a chance to correct the issue. The franchisee must then cure the default to Cinnabon's reasonable satisfaction within the specified time.
However, there are exceptions where Cinnabon can terminate the agreement without providing an opportunity to cure if, 24 hours after a notice of default, the franchisee fails to cure a default related to any dilution or adulteration of Approved Products or any misrepresentation, substitution, or palming off of unapproved products from the Franchised Business. This highlights the importance of adhering to Cinnabon's standards and regulations to avoid potential termination of the franchise agreement.