What is the Royalty Fee for a Cinnabon Express Bakery in a Schlotzsky's?
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 Express Bakery located within a Schlotzsky's is determined by the then-current product price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products. These products must be purchased from Cinnabon or their designated supplier.
Unlike full Cinnabon bakeries, where royalty fees are a percentage of net sales, the Express Bakery model in a Schlotzsky's has a royalty fee based on product purchases. This means the franchisee's royalty payment is directly tied to the volume of Cinnabon products they sell, rather than their overall revenue.
This structure may simplify royalty calculations for franchisees operating within a Schlotzsky's, as it removes the need to calculate a percentage of net sales. However, it also means that the royalty payment will fluctuate based on product costs and sales volume. Prospective franchisees should carefully consider their projected sales volume and product costs to understand the potential royalty obligations for this type of Cinnabon location.