What is the purpose of the set-up fee for a Cinnabon SRU, and is it refundable?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement pursuant to Section 14 below.
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- Lessee Obligations. Lessee must provide Lessor with the following items:
- a. Lease Agreement. A copy of the signed Lease Agreement or a letter of approv
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee leasing a Satellite Retail Unit (SRU) must pay a set-up fee. This fee is used to cover the expenses Cinnabon incurs to prepare the SRU for the franchisee's use.
The set-up fee is $500 and is paid to Cinnabon upon the execution of the SRU lease agreement. This fee contributes to defraying the costs Cinnabon incurs in setting up the SRU for operation.
It is important to note that the $500 set-up fee is nonrefundable. This means that once the fee is paid, it will not be returned to the franchisee under any circumstances, even if the SRU lease is terminated or the SRU is not ultimately used.