Who collects the Royalty Fee for Cinnabon Auntie Anne's Co-Branded Bakeries in Other Locations?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ument. We and the Co-Branded Franchisor will jointly collect and split the other initial fees described in this Item 5.
All Initial Fees. Except as noted above, you do not pay us or our affiliates any other fees or payments for services or goods before your Bakery opens. The initial fees are not refundable.
ITEM 6 OTHER FEES
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Net Sales, except: Auntie Anne's Co Branded Bakeries in Other Locations: 6% of Net Sales attributed to Cinnabon; 7% of Net Sales attributed to Auntie Anne's, which Auntie Anne's may increase in its sole discretion to 8% of Net Sales Express Bakeries in a Schlotzsky's: then-current product price per case | For Full Bakeries, payable weekly on the date specified in the Manuals (the "Payment Due Date"); For Express Bakeries, due on receipt of our or the Supplier's invoice for the products | See Note 2 for the definition of "Net Sales." See Note 3 for the definition of "Other Locations" For Auntie Anne's Co-Branded Bakeries in Other Locations, we will collect our Royalty Fee (which is 6% of Net Sales) based on the portion of Net Sales attributable to products that we and Auntie Anne's have agreed to credit to the Cinnabon side of the Co-Branded Bakery, and Auntie Anne's will collect a separate Royalty Fee (which is 7% to 8% of Net Sales) based on the portion of Net Sales attributable to products that we and Auntie Anne's have agreed to credit to the Auntie Anne's side of the Co-Branded Bakery. For Express Bakeries that are in a Schlotzsky's, the Royalty Fee shall be the then-current price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products you purchase from us or our designated Supplier. |
| Advertising Contribution | Bakeries in Other Locations (except Auntie Anne's Co | Payment Due Date | See Note 3 for the definition of "Other Locations" and "Streetside Locations." |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, for Cinnabon and Auntie Anne's co-branded bakeries in "Other Locations," Cinnabon will collect a royalty fee of 6% of Net Sales based on the portion of net sales attributable to products that Cinnabon and Auntie Anne's have agreed to credit to the Cinnabon side of the co-branded bakery. Auntie Anne's will collect a separate royalty fee, which is between 7% and 8% of Net Sales, based on the portion of net sales attributable to products that Cinnabon and Auntie Anne's have agreed to credit to the Auntie Anne's side of the co-branded bakery. The royalty fees are payable weekly on the date specified in the manuals.
"Other Locations" are defined as all locations other than Streetside Locations, including malls (enclosed and open air), outlet malls and centers, Non-Traditional Locations, and ghost or delivery kitchens. Streetside Locations include freestanding, inline, and endcap locations on city streets or in shopping centers (including power centers, lifestyle centers, and strip centers, but excluding malls (enclosed and open air) and outlet malls and centers).
Net Sales will not include (a) the initial sales or reloading of gift cards, (b) discounts, (c) the sale of food or merchandise for which refunds have been made in good faith to customers, (d) the discounted portion of employee meals, (e) sales, meals, use or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority, (f) the sale of equipment used in the operation of the Bakery, or (g) tips. Net Sales includes sales made from an SRU.