Within how many days after the expiration or termination of the Cinnabon franchise agreement must the franchisee pay all outstanding amounts owed to Cinnabon and its affiliates?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Within 5 days after expiration or termination, pay us and our affiliates the full amount you owe us and them.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee must pay all outstanding amounts owed to Cinnabon and its affiliates within 5 days after the expiration or termination of the franchise agreement. This obligation is part of the general requirements that a franchisee must fulfill upon the end of their agreement, regardless of the reason for termination or expiration.
This requirement ensures that Cinnabon receives all due payments promptly after the franchise ceases operation. It is crucial for franchisees to be aware of this short timeframe to avoid potential penalties or legal actions for late payment. Franchisees should maintain accurate financial records and prepare for this final payment as they approach the end of their franchise term or in the event of early termination.
In addition to this immediate payment obligation, the FDD also states that liquidated damages must be paid within 30 days of termination. This highlights the importance of understanding all financial obligations upon expiration or termination, as there are separate timelines for different types of payments. Prospective franchisees should carefully review the termination and expiration clauses in the franchise agreement to fully understand their financial responsibilities.