Who collects the Supply Chain Fee from Appointed Distributors for Cinnabon?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| not exceed 110% of our or their actual costs and expenses. | |||
| Technology Fee | Our then-current fee, which may be based on a percentage of Net Sales, fixed fees, and/or usage fees. Currently, we do not collect this fee. | As incurred | We may require you to pay us, or a third party we designate, a Technology Fee to defray our costs of developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that we, in our sole discretion, deem appropriate. This fee may replace or supplement other technology-related fees in this table. The fee may be modified from time to time, but it will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services. |
| Purchasing Program Fee | A reasonable membership fee assessed by the Purchasing Program. | As incurred | If we designate or establish any purchasing and/or distribution cooperatives/ associations/ programs ("Purchasing Programs"), you must become a member and pay any membership fees assessed. We currently do not have any Purchasing Programs which require membership fees Any membership fees set by us or our affiliates charge will not exceed 110% of our or their actual costs and expenses. |
| Supply Chain Fee | The then-current fee. Currently, $0.31 to $0.58 per case purchased through |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the Supply Chain Fee, currently ranging from $0.31 to $0.58 per case, is collected by Cinnabon and/or its affiliates from certain Appointed Distributors. These Appointed Distributors are the ones from whom franchisees may purchase products and services. The purpose of this fee is to offset expenses related to managing the supply chain.
This means that Cinnabon franchisees do not directly pay the Supply Chain Fee. Instead, it is built into the cost of goods purchased from Appointed Distributors. This fee structure allows Cinnabon to manage its supply chain costs and potentially adjust the fee in the future, with changes limited to the Allowed Adjustment amount.
For a prospective Cinnabon franchisee, this indicates that the cost of supplies will include this fee. While the franchisee doesn't directly remit the fee to Cinnabon, it is an indirect cost of doing business. Understanding the Appointed Distributors and their pricing, including this fee, is crucial for managing the bakery's expenses and profitability. Franchisees should also be aware that Cinnabon can modify this fee, but any increase is capped by the Allowed Adjustment.