What must a Cinnabon franchisee do to be eligible to receive a referral fee under the Franchisee/Industry Contact Lead Referral Program?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
"Baking SRU Program"). The Baking SRU Program requires the payment of an annual license fee and includes options to convert to a full franchise with the payment of an Initial Franchise Fee.
Franchisee/Industry Contact Lead Referral Program
We may pay a referral fee of $5,000 for a Full Bakery, $750 for an Express Bakery and $500 for a Concession Bakery to the first of our franchisees or real estate brokers that introduces a new prospective franchisee to us, if we approve the new prospect and we and the prospect sign a Franchise Agreement within six months after the referral is made and the prospective franchisee pays us the full Initial Franchise Fee (as defined in Item 5). If we pay this referral fee, we will do so after the referred prospective franchisee's Franchise Agreement is fully signed and the full Initial Franchise Fee is paid. A prospective franchisee will not be considered new if the prospective franchisee (including any of the individual owners if the prospective franchisee is an entity) has signed a franchise agreement with any other brands in the GoTo Foods Portfolio, and the referral fee will only be paid once in connection with the first franchise agreement si
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–25)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee can receive a referral fee by introducing a new prospective franchisee to Cinnabon. If Cinnabon approves the new prospect, and both Cinnabon and the prospect sign a Franchise Agreement within six months of the referral, the referring franchisee becomes eligible for the fee. The prospective franchisee must also pay the full Initial Franchise Fee. The referral fee is $5,000 for a Full Bakery, $750 for an Express Bakery, and $500 for a Concession Bakery.
However, a prospective franchisee is not considered new if they (or any of the individual owners, if the franchisee is an entity) have already signed a franchise agreement with any other brands in the GoTo Foods Portfolio. In such cases, the referral fee will only be paid once, in connection with the first franchise agreement signed with a brand in the GoTo Foods Portfolio. To actually receive the referral fee, the referring franchisee must be in full compliance with all existing Franchise Agreements with Cinnabon.
Cinnabon will pay the referral fee after the referred prospective franchisee's Franchise Agreement is fully signed and the full Initial Franchise Fee is paid. It's important to note that Cinnabon reserves the right to terminate, cancel, or modify the referral program at any time, which introduces an element of uncertainty for franchisees relying on this program.