What is the Royalty Fee for a Cinnabon Auntie Anne's Co-Branded Bakery in Other Locations?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Net Sales, except: Auntie Anne's Co Branded Bakeries in Other Locations: 6% of Net Sales attributed to Cinnabon; 7% of Net Sales attributed to Auntie Anne's, which Auntie Anne's may increase in its sole discretion to 8% of Net Sales Express Bakeries in a Schlotzsky's: then-current product price per case | For Full Bakeries, payable weekly on the date specified in the Manuals (the "Payment Due Date"); For Express Bakeries, due on receipt of our or the Supplier's invoice for the products | See Note 2 for the definition of "Net Sales." See Note 3 for the definition of "Other Locations" For Auntie Anne's Co-Branded Bakeries in Other Locations, we will collect our Royalty Fee (which is 6% of Net Sales) based on the portion of Net Sales attributable to products that we and Auntie Anne's have agreed to credit to the Cinnabon side of the Co-Branded Bakery, and Auntie Anne's will collect a separate Royalty Fee (which is 7% to 8% of Net Sales) based on the portion of Net Sales attributable to products that we and Auntie Anne's have agreed to credit to the Auntie Anne's side of the Co-Branded Bakery. For Express Bakeries that are in a Schlotzsky's, the Royalty Fee shall be the then-current price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products you purchase from us or our designated Supplier. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the royalty fee for an Auntie Anne's Co-Branded Bakery in Other Locations is structured as follows: Cinnabon collects 6% of Net Sales attributed to Cinnabon products, while Auntie Anne's collects a separate royalty fee of 7% of Net Sales attributed to Auntie Anne's products. Auntie Anne's has the discretion to increase their royalty fee to 8% of Net Sales. These royalty fees are based on the portion of Net Sales that Cinnabon and Auntie Anne's have agreed to credit to each brand within the co-branded bakery. The royalty fees for Full Bakeries are payable weekly on the date specified in the Manuals.
'Other Locations' are defined as all locations other than Streetside Locations, including malls (enclosed and open air), outlet malls and centers, Non-Traditional Locations, and ghost or delivery kitchens. 'Streetside Locations' include freestanding, inline, and endcap locations on city streets or in shopping centers (including power centers, lifestyle centers, and strip centers, but excluding malls (enclosed and open air) and outlet malls and centers).
For a prospective franchisee, this means that the total royalty paid will depend on the sales mix between Cinnabon and Auntie Anne's products. It's important to understand how the Net Sales are attributed between the two brands to accurately forecast royalty payments. The franchisee should also be aware that Auntie Anne's may increase its royalty fee, which would impact the overall cost of operating the co-branded bakery. Understanding the definitions of 'Net Sales' and 'Other Locations' is also crucial for calculating and paying the correct royalty fees.