When renewing a Cinnabon franchise, what specific initial franchise fee is referenced in Section 2.2.B(ii)?

According to the 2025 Cinnabon Franchise Disclosure Document, the specific initial franchise fee referenced in Section 2.2.B(ii) depends on the type of Cinnabon franchise. For a Cinnabon Express Bakery, Section 22.11.C states that the renewal condition in Section 2.2.B(ii) is revised to replace "then-current Initial Franchise Fee" with "then-current Initial Franchise Fee for Express Bakeries." Similarly, for a Cinnabon Concession Bakery, Sections 16.3.K, 16.4, 16.5, and 18.2.D revise the language to replace "then-current initial franchise fee" with "then-current initial franchise fee for a Concession Bakery."

For a prospective franchisee, this means that the renewal fee structure is not uniform across all Cinnabon franchise types. If you own an Express Bakery or a Concession Bakery, the renewal fee will be based on the initial franchise fee for that specific type of outlet at the time of renewal, rather than the standard initial franchise fee. This could be advantageous if the initial fee for these specialized locations is lower than the standard fee. However, it also introduces uncertainty, as the "then-current" fee could fluctuate over time.

It is important for franchisees to understand which type of Cinnabon franchise they operate (Express Bakery, Concession Bakery, or standard) and to clarify with Cinnabon what the initial franchise fee is for that specific type of franchise at the time of renewal. This information is crucial for financial planning and assessing the overall cost of renewing the franchise agreement. Franchisees should also inquire about any potential differences in fees or requirements between franchise types to make informed decisions about their investment.