Where does Cinnabon record state franchise tax expenses?

According to Cinnabon's 2025 Franchise Disclosure Document, the company is subject to state franchise taxes in certain states, based on either income or equity. Cinnabon records these franchise tax expenses under "Selling, general and administrative expenses."

This means that when Cinnabon calculates its financial performance, the costs associated with state franchise taxes are included within the broader category of selling, general, and administrative expenses. This is a common accounting practice, as these taxes are considered part of the cost of doing business.

For a prospective Cinnabon franchisee, this information is primarily relevant for understanding how Cinnabon manages its own finances. It does not directly impact the franchisee's day-to-day operations or financial reporting, but it provides insight into how the franchisor accounts for its tax obligations.