How will Cinnabon Comprehensive Support Fees be paid, and what is the Payment Date?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Payments of Comprehensive Support Fees will be drafted by Franchisor on behalf of Company from Franchisee's Designated Bank Account under Franchisor's electronic funds transfer or draft system ("EFT") one time per month on the same day that royalties and other fees due under the Franchise Agreement are first drafted for each month (the "Payment Date").
Payments shall commence on the Payment Date of the first (1st) full month following the Opening Date.
Time is of the essence in the performance of all payment obligations by Franchisee.
Company may change credit or payment terms at any time when, in Company's opinion, Franchisee's financial condition, previous payment record, or the nature of Franchisee's relationship with Company so warrants.
Franchisee is responsible for maintaining sufficient funds in the Designated Bank Account for all Comprehensive Support Fees due under this Agreement, in addition to any amounts drafted by EFT under the Franchise Agreement and the Manuals.
In the event there are insufficient funds in the Designated Bank Account to cover the draft of a payment due hereunder, Company reserves the right to charge Franchisee the return costs charged by Franchisor's bank and an administrative fee to cover Franchisor's and/or Company's cost of addressing the nonpayment.
Such administrative fee is in addition to any interest on the amount due.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Comprehensive Support Fees will be paid via electronic funds transfer (EFT). These payments will be drafted by Cinnabon from the franchisee's Designated Bank Account.
The Payment Date for these fees will be the same day that royalties and other fees due under the Franchise Agreement are first drafted each month. Payments will start on the Payment Date of the first full month following the Opening Date of the Cinnabon franchise.
It is crucial for franchisees to maintain sufficient funds in their Designated Bank Account to cover these fees, along with any other amounts drafted under the Franchise Agreement and Manuals. Failure to do so may result in the company charging the franchisee return costs from the bank and an administrative fee to cover the costs of addressing the nonpayment, in addition to any interest on the amount due.