Commercial Real Estate and Franchises and Shopping Centers and Circle Centre and Property Management and Simon Property Group and Retailers and Retail and Real Estate & Retail

Circle Centre wants Cinnabon out of mall

August 29, 2011

The Cinnabon bakery in Circle Centre is in danger of being bounced from its second-floor location.

Circle Centre Mall LLC has filed suit against Cinnaworks LLC, a franchisee of Atlanta-based Cinnabon, accusing it of failing to pay rent at the downtown Indianapolis mall.

Circle Centre, managed by locally based Simon Property Group Inc., said in its Aug. 23 complaint that it is entitled to immediate possession of the Cinnabon space, but the owner “wrongfully and unlawfully continues to retain possession.”

Anaheim, Calif.-based Cinnaworks signed its current 10-year lease with the mall on Sept. 28, 2005, and occupies 1,272 square feet near the Artsgarden.

Cinnaworks pays $81,016.18 in annual rent, or roughly $6,751 per month, according to the lease. The mall receives a percentage of sales if annual revenue exceeds $1 million, the lease said.

Circle Centre said in its complaint that it declared the lease in default Aug. 3, and demanded that Cinnaworks pay back rent by Aug. 18, which it failed to do.

The mall did not specify in its suit how much it is owed in rent.

Cinnabon was founded in Seattle in 1985 and operates more than 770 franchised cinnamon roll bakeries.

 

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