What is the definition of 'Net Sales' for a Cinnabon franchise?

According to the 2025 Cinnabon Franchise Disclosure Document, "Net Sales" includes all revenues generated from a satellite retail unit (SRU). This definition is relevant to Section 3.2.C of the Franchise Agreement, which pertains to Net Sales.

This clarification ensures that all income derived from any SRU operated under the Cinnabon franchise is accounted for when calculating royalties, advertising contributions, and other fees that are based on a percentage of revenue. An SRU is a satellite retail unit, which is a smaller version of the traditional Cinnabon store that may operate in a different type of location.

For a prospective Cinnabon franchisee, this means that if they operate an SRU in addition to their primary location, all sales from the SRU will be included in the calculation of their Net Sales. This is important for financial planning and understanding the total revenue that will be subject to royalty and advertising fees. Franchisees should ensure they fully understand how Net Sales are calculated, including any specific exclusions or deductions, to accurately manage their financial obligations to Cinnabon.