How does Cinnabon handle the collection of fees due under the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, we directly impose all the fees in this table, you pay them to us, and we do not refund them.
We endeavor to impose these fees uniformly but reserve the right to make variances in special circumstances.
We collect all fees due to us under the Franchise Agreement through EFT.
We may change the Payment Due Date, and any other due dates, in the Manuals or in a written notice to you.
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon collects all fees due under the Franchise Agreement through Electronic Funds Transfer (EFT). Cinnabon retains the right to modify the Payment Due Date, along with any other due dates, by providing written notice or through updates in the manuals.
Several other fees are outlined in the FDD, such as the insufficient funds fee. If an EFT is attempted and there are insufficient funds, Cinnabon may charge a fee to cover their costs and any bank return charges, in addition to interest on the amount due. There is also a late reporting fee of $50 per week if a franchisee fails to submit timely, complete, and accurate reports, financial statements, tax returns, and statements of initial investment costs when due. Cinnabon may change this fee in any year by no more than the Allowed Adjustment.
Additional fees include taxes and other payments, where the franchisee must pay Cinnabon or its affiliates for various taxes and amounts paid on the franchisee's behalf within 10 days after demand. Other fees include those for training, support, conferences, and subleasing. For example, the Learning Management System License Fee is currently $170 per year. These fees are subject to change, with Cinnabon reserving the right to make variances in special circumstances, although they endeavor to impose these fees uniformly.