Does Cinnabon offer any financing options to help franchisees pay the Royalty Fee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ument. We and the Co-Branded Franchisor will jointly collect and split the other initial fees described in this Item 5.
All Initial Fees. Except as noted above, you do not pay us or our affiliates any other fees or payments for services or goods before your Bakery opens. The initial fees are not refundable.
ITEM 6 OTHER FEES
| 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"); |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain information regarding financing options offered by Cinnabon to help franchisees pay the Royalty Fee. The excerpts focus primarily on the amounts and conditions of various fees, including the Royalty Fee itself, but do not detail any financing arrangements. The Royalty Fee for Cinnabon is 6% of Net Sales, with some variations for co-branded locations and Express Bakeries.
While the FDD excerpts detail various fees and payment terms, they do not address whether Cinnabon provides direct financing or facilitates third-party financing for franchisees to manage their Royalty Fee obligations. The document does outline the consequences of failing to meet financial obligations, such as the Reinstatement Fee, which includes unpaid Royalty Fees, and potential Liquidated Damages upon termination, which are calculated based on past Royalty payments.
Prospective franchisees should directly inquire with Cinnabon's franchising department about available financing options or assistance programs to help manage the ongoing Royalty Fee payments. Understanding these options is crucial for assessing the overall financial feasibility and risk associated with investing in a Cinnabon franchise.