What is the payment schedule for Royalty Fees for Cinnabon Full 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, franchisees operating Full Bakeries are required to pay royalty fees on a weekly basis. The specific date for these payments is detailed in the Cinnabon manuals and is referred to as the "Payment Due Date." The royalty fee itself is calculated as 6% of Net Sales. Net Sales includes all revenues generated by the bakery, whether from cash, credit, or other forms of exchange. This encompasses sales of approved products and services, including off-premises catering and delivery.
It's important to note that Cinnabon collects all fees due under the Franchise Agreement through Electronic Funds Transfer (EFT). While Cinnabon endeavors to maintain uniform fee structures, the document states that they reserve the right to make variances in special circumstances. Additionally, Cinnabon retains the flexibility to modify the Payment Due Date, as well as any other due dates, by updating the manuals or providing written notice to franchisees.
For prospective Cinnabon franchisees, understanding the weekly royalty payment schedule is crucial for managing cash flow. Franchisees should carefully review the Cinnabon manuals to identify the precise Payment Due Date and stay informed of any potential changes communicated by Cinnabon. Furthermore, franchisees should be aware of how "Net Sales" is defined, as this forms the basis for royalty calculations. This definition includes all revenue streams associated with the bakery, ensuring comprehensive reporting and payment of royalties.