For Cinnabon Full Bakeries, when is the Royalty Fee due?
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 Royalty Fee for Full Bakeries is payable weekly on the date specified in the Manuals, referred to as the "Payment Due Date". The standard royalty fee is 6% of Net Sales.
For Cinnabon franchisees operating Full Bakeries, this means that they must remit their royalty payments every week. The specific day of the week for this payment will be outlined in the Cinnabon Manuals. Franchisees need to be aware of these dates to avoid late payment fees or other penalties. Net Sales includes all revenues generated by the Bakery.
It's important to note that Cinnabon may modify the Payment Due Date, as well as any other due dates, in the Manuals or through written notice to the franchisee. Therefore, franchisees should stay informed of any updates to the Manuals or any official communications from Cinnabon regarding payment schedules. This weekly payment schedule is fairly typical in the food franchise industry, as it allows franchisors to maintain a steady cash flow and provides franchisees with a regular reminder of their obligations.