Within how many days after the termination of the Cinnabon franchise agreement must liquidated damages be paid?

According to Cinnabon's 2025 Franchise Disclosure Document, if the franchise agreement is terminated, the franchisee is required to pay all liquidated damages within 30 days of the termination date.

This means that a former Cinnabon franchisee must make a lump-sum payment to Cinnabon within this timeframe. The amount of these liquidated damages is calculated based on the average monthly Royalty Fee owed during the 36 months before termination, multiplied by the lesser of the remaining term of the agreement or 36 months. If the franchise was terminated before the opening date, the franchisee will forfeit the initial franchise fee but will not owe any liquidated damages.

It is important for prospective franchisees to understand this obligation, as it can represent a significant financial burden in the event of early termination. Franchisees should carefully review the terms of the franchise agreement and consider the potential financial implications before signing.