When do Cinnabon franchisees begin making Comprehensive Support Fee payments?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
for Support Services required under this Agreement.
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- Service Fees. Franchisee shall pay Company the Comprehensive Support Fee and/or Billable Support Fee (collectively, the "Service Fees"), as applicable, for the Support Services provided by Company. Service Fees are exclusive of, and Franchisee will pay, any applicable sales, use, service, value added or like taxes. In the event of a Franchisee Default (as defined below), Company reserves the right, but not the obligation, to suspend part or all of the Support Services until such Franchisee Default is cured; provided however, that Franchisee shall continue to pay Service Fees, during the Term of the Agreement notwithstanding any suspension of Support Services due to a Franchisee Default.
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- Amendments to Schedule A. Company reserves the right, but not the obligation, from time to time, to review the Support Services and Service Fees provided under this Agreement and, in its sole discretion, to amend Schedule A to reflect a change in Support Services or Service Fees, provided that any changes to the fees in any calendar year will not exceed, at our option, (a) 50% of the fee that is in effect at the start of the calendar year or (b) the increase in our or our affiliates' actual costs and expenses to provide the Support Services to you. Company shall provide Franchisee with notice of any amendment to Schedule A via e-mail or update to the Manuals at least ninety (90) days prior to such amendment taking effect.
6. Payment.
- a. Electronic Funds Transfer; Payment Date. Payments of Comprehensive Support Fees will be drafted by Franchisor on behalf of Company from Franchisee's Designated Bank Account under Franchisor's electronic funds transfer or draft system ("EFT") one time per month on the same day that royalties and other fees due under the Franchise Agreement are first drafted for each month (the "Payment Date"). Payments shall commence on the Payment Date of the first (1st) full month following the Opening Date. Time is of the essence in the performance of all payment obligations by Franchisee. Company may change credit or payment terms at any time when, in Company's opinion, Franchisee's financial condition, previous payment record, or the nature of Franchisee's relationship with Company so warrants.
- b. Temporary Closure.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Comprehensive Support Fee payments start on the Payment Date of the first full month following the Opening Date of the Cinnabon location. These payments are drafted monthly via electronic funds transfer (EFT) from the franchisee's Designated Bank Account, coinciding with royalty and other fee payments.
This means that a new Cinnabon franchisee will not owe the Comprehensive Support Fee during the initial partial month of operation. Instead, the payments begin at the start of the subsequent month. Franchisees must ensure sufficient funds are available in their Designated Bank Account to cover these fees, along with any other EFT drafts related to the franchise agreement.
If a Cinnabon store temporarily closes with the company's approval, the Comprehensive Support Fees are suspended starting from the Payment Date of the first full month after the closure begins. Payments are then reinstated on the Payment Date of the first full month following the end of the closure, provided Cinnabon hasn't continued support services during the closure at the franchisee's request. Franchisees are responsible for notifying Cinnabon and securing approval for any temporary closures to ensure proper handling of fee suspensions.
Failure to maintain sufficient funds for the Comprehensive Support Fees can result in additional charges. Cinnabon reserves the right to charge the franchisee for return costs from the bank and an administrative fee to cover the costs of addressing the nonpayment, in addition to any interest on the amount due.