Does the definition of 'Net Sales' for a Cinnabon include gift card sales?

Based on the 2025 Cinnabon Franchise Disclosure Document, the excerpts provided do not explicitly state whether 'Net Sales' includes revenue from gift card sales. However, the document does define 'Net Sales' in the context of satellite retail units (SRU), stating that it includes all revenues generated from an SRU.

Since the definition of 'Net Sales' is crucial for calculating royalty fees (6% of Net Sales for Streetside and Carvel Co-Branded Bakeries, and variable percentages for Auntie Anne's Co-Branded Bakeries) and advertising contributions (up to 5% of Net Sales combined with Local Marketing Obligation), a prospective franchisee should seek clarification from Cinnabon regarding the inclusion of gift card sales in the definition of 'Net Sales'.

Understanding whether gift card sales are included in 'Net Sales' is important for accurately forecasting revenue and expenses. This information will help a franchisee understand the financial obligations to Cinnabon and the potential profitability of the franchise. It is also important to note that the Local Marketing Obligation is currently 1% of Net Sales per calendar quarter, and the Grand Opening Obligation varies based on location type, ranging from $6,000 to $25,000.