For a Cinnabon Co-Branded Franchise, which fees may both Cinnabon and the Co-Branded Franchisor independently impose?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Section 3 (Fees) is amended by adding the following as Section 3.8:
- 3.8. Collection of Fees for Co-Branded Franchises. We and the Co-Branded Franchisor may both independently impose the following fees in accordance with the terms of this Agreement and/or the Co-Branded Agreement (in other words, (a) we could charge the fee and the Co-Branded Franchisor could also separately charge the same fee or (b) we could charge the fee, even if the Co-Branded Franchisor does not do so): (i) the Renewal Fee; (ii) the Ordering Support Fee; (iii) fees related to Advertising Cooperatives, brand promotions, taxes and related payments, conferences and programs, brand advisory councils, Transfers, gift card and loyalty programs, loyalty apps, online ordering, purchasing programs,
supply chains, insurance policies, development deadline extensions, indemnification provisions, attorneys' fees, and the reinstatement of franchises; and (iv) any other fees that are brand-specific or relate to costs that may be separately incurred by us and/or the Co-Branded Franchisor. All other fees will be charged by (x) us or the Co-Branded Franchisor, but not both or (y) jointly by both us and the Co-Branded Franchisor (and split between the two of us).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, both Cinnabon and the Co-Branded Franchisor have the right to independently impose certain fees on Co-Branded Franchisees. This means that Cinnabon could charge a fee, and the Co-Branded Franchisor could also charge the same fee separately, or Cinnabon could charge a fee even if the Co-Branded Franchisor does not. These fees include the Renewal Fee and the Ordering Support Fee.
Additionally, Cinnabon and the Co-Branded Franchisor can independently impose fees related to various operational aspects. These include fees for Advertising Cooperatives, brand promotions, taxes and related payments, conferences and programs, brand advisory councils, Transfers, gift card and loyalty programs, loyalty apps, online ordering, purchasing programs, and supply chains. They can also independently charge fees related to insurance policies, development deadline extensions, indemnification provisions, attorneys' fees, and the reinstatement of franchises.
Finally, any other fees that are brand-specific or relate to costs that may be separately incurred by Cinnabon and/or the Co-Branded Franchisor can be independently imposed. All other fees not listed will be charged either by Cinnabon or the Co-Branded Franchisor, but not both, or jointly by both and split between them. This clarifies that franchisees could potentially pay certain fees twice, once to each entity, highlighting the importance of understanding the full fee structure in the franchise agreement.