What administrative fee does Cinnabon retain when a gift card is redeemed in my bakery?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
and Loyalty Programs") that we establish, using vendors that we designate, which may include us or our affiliates. We or our affiliates may charge, or collect on behalf of our vendors, an administrative cost for participating in these programs. Currently, our gift card distributor retains 7.75% or 12% of the value of a gift card |
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| purchased from a retailer other than a Bakery | |||
| (with the percentage varying by retailer). If a gift | |||
| card | |||
| is | |||
| redeemed | |||
| in | |||
| your | |||
| Bakery, | |||
| we | |||
| will | |||
| reimburse the redeemed amount minus the 7.75% | |||
| or 12% administrative fee retained by the vendor. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, when a gift card is redeemed at your Cinnabon bakery, Cinnabon will reimburse you for the redeemed amount, but they will deduct an administrative fee retained by the vendor. This fee is either 7.75% or 12%, with the percentage varying depending on the retailer from which the gift card was originally purchased.
In addition to this administrative fee, Cinnabon franchisees must also pay a monthly fee of $4.50 to Cinnabon's designated gift card processor. This monthly fee covers unlimited transactions and settlement processing. It is important to note that both the administrative fee percentage retained by the vendor and the monthly fee paid to the gift card processor are subject to change.
However, Cinnabon states that any changes to these fees charged by Cinnabon or its affiliates will not exceed 110% of their actual costs and expenses. This provides some assurance that fee increases will be tied to actual costs, but franchisees should still be aware that these costs can fluctuate. It is important for prospective franchisees to factor in these ongoing fees when evaluating the potential profitability of a Cinnabon franchise.