What written agreement regarding capital expenditures must a Cinnabon franchisee make before the Renewal Term begins to complete a Remodel?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Conditions for Renewal Term. If we approve your Application, you must:
- (i) Agree in writing before the Renewal Term begins that you will make the significant capital expenditures necessary to complete a Remodel (as defined in Section 12.6.B. (Remodel)) within six months after the Renewal Term begins.
- (ii) Sign and return our then-current form of franchise agreement (the "Renewal Agreement") within 30 days after we deliver it to you and pay a renewal fee equal to 20% of the amount of the then-current Initial Franchise Fee. You agree that the Renewal Agreement may contain terms that differ materially from this Agreement.
- (iii) Sign a general release in a form we prepare, releasing us and our parents, subsidiaries, and affiliates and the respective directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, successors, heirs and assigns of each of the foregoing (in their corporate and individual capacities) (collectively, the "Released Parties"), from all claims you may have against the Released Parties as of the date of the Renewal Agreement. Your Owners must also sign the general release required in the previous sentence. Released Parties is not intended to include suppliers or distributors to you that are not affiliated with us and are not acting as our agent.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, if a franchisee's application for a Renewal Term is approved, they must agree in writing to make the necessary capital expenditures to complete a Remodel within six months after the Renewal Term begins. This written agreement must be made before the Renewal Term can commence. The Remodel is defined in Section 12.6.B of the Cinnabon franchise agreement.
This requirement ensures that Cinnabon locations are updated to meet the brand's current standards. Remodeling can be a significant expense for franchisees, as it involves substantial capital investment. Franchisees need to be prepared to cover these costs to maintain the brand's image and operational standards.
In addition to agreeing to the capital expenditures for the Remodel, the franchisee must also sign the then-current form of the franchise agreement, known as the "Renewal Agreement," within 30 days of receiving it. They must also pay a renewal fee equal to 20% of the then-current Initial Franchise Fee. Furthermore, the franchisee must sign a general release, releasing Cinnabon and its affiliates from any claims as of the date of the Renewal Agreement. These conditions are standard in franchise renewal processes to ensure both parties are aligned and protected moving forward.