What is the payment schedule for Royalty Fees for Cinnabon Express Bakeries?
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 payment schedule depends on the type of Cinnabon Express Bakery. For Express Bakeries that are in a Schlotzsky's location, the royalty fee is due upon receipt of the invoice from Cinnabon or its designated supplier for the products.
For Cinnabon Express Bakeries located within a Schlotzsky's, the royalty fee is the then-current product price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products purchased from Cinnabon or its designated supplier. This differs from the royalty fee structure for full Cinnabon bakeries, where the royalty fee is 6% of Net Sales and is payable weekly on the date specified in the manuals.
It is important to note that Cinnabon may change the Payment Due Date in the manuals or in a written notice to the franchisee. Franchisees should carefully review the manuals and any written notices from Cinnabon to stay informed about the current royalty fee payment schedule and amounts.