Regarding co-branded franchises, can both Cinnabon and the Co-Branded Franchisor independently impose fees for renewal, ordering support, and other items?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Section 3 (Fees) is amended by adding the following as Section 3.8:
- 3.8. Collection of Fees for Co-Branded Franchises. We and the Co-Branded Franchisor may both independently impose the following fees in accordance with the terms of this Agreement and/or the Co-Branded Agreement (in other words, (a) we could charge the fee and the Co-Branded Franchisor could also separately charge the same fee or (b) we could charge the fee, even if the Co-Branded Franchisor does not do so): (i) the Renewal Fee; (ii) the Ordering Support Fee; (iii) fees related to Advertising Cooperatives, brand promotions, taxes and related payments, conferences and programs, brand advisory councils, Transfers, gift card and loyalty programs, loyalty apps, online ordering, purchasing programs,
supply chains, insurance policies, development deadline extensions, indemnification provisions, attorneys' fees, and the reinstatement of franchises; and (iv) any other fees that are brand-specific or relate to costs that may be separately incurred by us and/or the Co-Branded Franchisor. All other fees will be charged by (x) us or the Co-Branded Franchisor, but not both or (y) jointly by both us and the Co-Branded Franchisor (and split between the two of us).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, both Cinnabon and the Co-Branded Franchisor have the right to independently impose certain fees on co-branded franchises. This means that a franchisee could be charged separately by both Cinnabon and the co-branding partner for the same fee, or Cinnabon could charge a fee even if the co-branding partner does not. This applies specifically to the Renewal Fee and the Ordering Support Fee.
In addition to the renewal and ordering support fees, Cinnabon and the Co-Branded Franchisor can independently impose fees related to advertising cooperatives, brand promotions, taxes and related payments, conferences and programs, brand advisory councils, transfers, gift card and loyalty programs, loyalty apps, online ordering, purchasing programs, supply chains, insurance policies, development deadline extensions, indemnification provisions, attorneys' fees, and the reinstatement of franchises. They can also charge any other fees that are brand-specific or relate to costs that may be separately incurred by either party.
For all other fees not specifically listed, the FDD states that they will be charged either by Cinnabon or the Co-Branded Franchisor, but not both, or jointly by both with the fee split between them. This clarification is important for prospective franchisees to understand the potential fee structure and obligations in a co-branded Cinnabon franchise, and to be aware of the possible cumulative costs from both franchisors.