For a Cinnabon Carvel co-branded bakery, who jointly collects the royalty fee?

According to the 2025 Cinnabon FDD, for a Cinnabon Carvel co-branded bakery, the royalty fee is 6% of net sales. This fee is payable each week based on the net sales of the franchised business for the preceding week, or on any other basis stated in the manuals or in written notice from Cinnabon. Both Cinnabon and the Co-Branded Franchisor will jointly collect this royalty fee from the franchisee. The collection is based on the net sales of the entire co-branded franchise.

This arrangement means that franchisees will not remit the royalty fee solely to Cinnabon, but rather it will be a joint collection effort between Cinnabon and the Carvel Co-Branded Franchisor. This likely requires coordination between the two franchisors to ensure accurate collection and accounting of the fees.

Prospective franchisees should clarify the exact procedures for royalty fee collection to ensure compliance and avoid potential discrepancies. Understanding the specific roles and responsibilities of both Cinnabon and the Co-Branded Franchisor in this process is crucial for smooth operations and financial management.