What is the current range of non-compliance fees that Cinnabon may charge for violations of Standards or the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
u fail or refuse to comply with any or all of the remedial measures we require; (iii) you fail to provide us with full cooperation in the course of any inspection or analysis we conduct; or (iv) we determine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C. Remedies Not Exclusive. The remedies stated in this Section 12.4 are in addition to, and not in substitution of, any other remedies stated in this Section 12.4 or elsewhere in this Agreement. Nothin
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, non-compliance fees, which Cinnabon reserves the right to charge, currently range from $25 to $500 per single violation. These fees are applicable if a franchisee fails to comply with any of Cinnabon's standards or any provision within the Franchise Agreement.
The document specifies that these non-compliance fees will be detailed in the manuals or in writing and may be adjusted periodically with written notice to the franchisee. The fees can be charged repeatedly, even daily, if the non-compliance continues. The amount of the fee can fluctuate based on the severity and frequency of the violations.
However, Cinnabon stipulates that the fees can only be increased annually by no more than the Allowed Adjustment. This provides some predictability for franchisees in terms of potential cost increases due to non-compliance. Franchisees should consult the manuals and any written notices from Cinnabon to stay informed about the current fee structure and to ensure compliance with all standards and agreement provisions.