How often can Cinnabon charge non-compliance fees for ongoing violations?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
u fail or refuse to comply with any or all of the remedial measures we require; (iii) you fail to provide us with full cooperation in the course of any inspection or analysis we conduct; or (iv) we determine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C. Remedies Not Exclusive. The remedies stated in this Section 12.4 are in addition to, and not in substitution of, any other remedies stated in this Section 12.4 or elsewhere in this Agreement. Nothin
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon has the right to charge franchisees non-compliance fees for violations of the franchise agreement or operational standards. These fees, which currently range from $25 to $500 per single violation, are in addition to any other remedies Cinnabon may pursue.
Importantly, Cinnabon can charge these non-compliance fees repeatedly, even as frequently as daily, if the violation is ongoing. The amount of the fee can vary depending on the severity and number of the defaults, as well as whether the defaults have been repeated. However, the fees may only be increased each calendar year by no more than the Allowed Adjustment.
This policy means that a Cinnabon franchisee could face significant financial penalties for continued failure to meet brand standards or comply with the franchise agreement. It is crucial for franchisees to maintain compliance to avoid the accumulation of daily non-compliance fees, which could quickly impact profitability. The franchisee should refer to the manuals for the non-compliance fees.