When do the management advisory and consulting services agreements between Cinnabon and affiliated entities expire, and are there any renewal provisions?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
which were fully utilized for 2023 and prior tax years.
Foreign income taxes arise from withholding taxes associated with payments of royalties and fees by international franchisees.
As of December 29, 2024 and December 31, 2023, the Company had no material unrecognized tax benefits.
As discussed in Note 1, the Company is included in the consolidated return of the Parent. The Parent files U.S., state, and local income tax returns in jurisdictions with varying statutes of limitation. The tax years after 2020 generally remain subject to
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company is party to management services agreements with affiliated entities. These agreements involve Cinnabon paying annual management fees to these affiliated entities. For the fiscal years ending December 29, 2024, and December 31, 2023, these fees amounted to $3,305 and $3,235, respectively, and were categorized within Other operating expense, net.
The two management advisory and consulting services agreements are scheduled to expire in December 2025. However, the agreements are subject to certain renewal provisions, which means there is a possibility for them to be extended beyond the expiration date.
A prospective Cinnabon franchisee should inquire about the specifics of these renewal provisions to understand the potential long-term financial implications and the nature of the ongoing relationship between Cinnabon and its affiliated entities. Understanding the terms of these agreements can provide insight into the stability and predictability of these management fees as part of the overall operating expenses.