What reports or statements must a Cinnabon franchisee submit when paying the Royalty Fee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Royalty Fee. You must pay to us a recurring, non-refundable royalty fee in the amount and at the times specified in Schedule A (the "Royalty Fee"). Concurrent with these payments, you must submit to us any reports or statements required under Section 14.3 (Systems and Reports).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, when a franchisee makes a royalty fee payment, they must also submit any reports or statements that are required under Section 14.3, which pertains to Systems and Reports. This means that in addition to paying the royalty fee, franchisees have an obligation to provide Cinnabon with specific documentation.
The specific reports and statements required under Section 14.3 are not detailed in this excerpt, so a prospective franchisee should review the full Section 14.3 in the FDD to understand the exact nature of these reporting requirements. This is a crucial aspect of the franchise agreement, as failure to comply with these reporting obligations could potentially lead to penalties or other consequences.
Understanding the nature and frequency of these reports is essential for budgeting time and resources. A prospective Cinnabon franchisee should ask Cinnabon for a detailed explanation of what these reports entail, how frequently they must be submitted, and the format in which they should be presented. This will help ensure full compliance with the franchise agreement and maintain a positive relationship with the franchisor.