Can a Cinnabon franchisee pay the Royalty Fee more frequently than weekly?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Net Sales, except: Auntie Anne's Co Branded Bakeries in Other Locations: 6% of Net Sales attributed to Cinnabon; 7% of Net Sales attributed to Auntie Anne's, which Auntie Anne's may increase in its sole discretion to 8% of Net Sales Express Bakeries in a Schlotzsky's: then-current product price per case | For Full Bakeries, payable weekly on the date specified in the Manuals (the "Payment Due Date"); For Express Bakeries, due on receipt of our or the Supplier's invoice for the products | See Note 2 for the definition of "Net Sales." See Note 3 for the definition of "Other Locations" For Auntie Anne's Co-Branded Bakeries in Other Locations, we will collect our Royalty Fee (which is 6% of Net Sales) based on the portion of Net Sales attributable to products that we and Auntie Anne's have agreed to credit to the Cinnabon side of the Co-Branded Bakery, and Auntie Anne's will collect a separate Royalty Fee (which is 7% to 8% of Net Sales) based on the portion of Net Sales attributable to products that we and Auntie Anne's have agreed to credit to the Auntie Anne's side of the Co-Branded Bakery. For Express Bakeries that are in a Schlotzsky's, the Royalty Fee shall be the then-current price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products you purchase from us or our designated Supplier. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the standard Royalty Fee for Full Bakeries is payable weekly on the date specified in the manuals, referred to as the "Payment Due Date." The document does not explicitly state whether a franchisee can make Royalty Fee payments more frequently than weekly.
For Cinnabon franchisees operating Express Bakeries, the Royalty Fee is due upon receipt of the invoice for products from Cinnabon or its designated supplier. This difference in payment schedule highlights that Cinnabon has different payment terms based on the type of franchise.
Since the FDD does not address the possibility of accelerated payments, it would be prudent for a prospective Cinnabon franchisee to directly inquire with the franchisor about the possibility of paying Royalty Fees more frequently than the standard weekly schedule. This would clarify whether such arrangements are permissible and under what conditions.