Does Cinnabon currently charge a Master Insurance Policy Fee?
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 certain Appointed Distributors (as defined in Item 8). | As incurred | We and/or our affiliate(s) collect this fee from certain Appointed Distributors from whom you may purchase products and services to offset expenses related to managing the supply chain. We may change this fee in any year by no more than the Allowed Adjustment. |
| Master Insurance Policy Fee | Currently not charged; we do not have an estimate at this time. | As incurred | We reserve the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to us or our Approved Supplier. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon does not currently charge a Master Insurance Policy Fee. However, Cinnabon reserves the right to implement such a fee in the future.
If Cinnabon decides to obtain a master insurance policy for the system, franchisees may be required to pay a proportionate share of the coverage costs. The FDD does not provide an estimated cost for this potential future fee.
It is important for prospective franchisees to understand that while this fee is not currently in effect, Cinnabon retains the right to implement it. Franchisees should factor in the potential for this additional cost when evaluating the financial feasibility of opening a Cinnabon franchise.