When is the Royalty Fee due for a Cinnabon Full Bakery?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ument. We and the Co-Branded Franchisor will jointly collect and split the other initial fees described in this Item 5.
All Initial Fees. Except as noted above, you do not pay us or our affiliates any other fees or payments for services or goods before your Bakery opens. The initial fees are not refundable.
ITEM 6 OTHER FEES
| 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 Full Bakeries is payable weekly on the date specified in the Manuals, referred to as the "Payment Due Date". The Royalty Fee is 6% of Net Sales. Net Sales includes all revenues generated by your Bakery or conducted from or with respect to the Bakery, whether the sales are evidenced by cash, check, credit, charge, account, barter or exchange.
For Cinnabon franchisees, this means that a portion of their weekly revenue (6% of Net Sales) must be remitted to Cinnabon as a royalty. The specific day of the week this payment is due will be outlined in the Cinnabon manuals. Franchisees need to be aware of these deadlines to avoid late fees or other penalties.
It's important to note that Cinnabon may change the Payment Due Date in the Manuals or in a written notice to you. Therefore, franchisees should stay informed of any updates to the payment schedule to ensure timely payments. The method of payment is through Electronic Funds Transfer (EFT).