What is the royalty fee for a Cinnabon franchise, and how often is it payable?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9. Section 3.2.A. (Royalty Fee):
The Royalty Fee shall be 6% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you).
- 9. Section 3.2.A. (Royalty Fee):
You are not required to pay a Royalty Fee. However, in the preparation and offering of Approved Products, you must purchase Proprietary Goods (as defined in Section 7.1.B. (Suppliers)) from our designated Approved Suppliers at the then-current price for Express Bakeries, which we or the supplier may increase or decrease from time to time. You understand that we will derive revenue (e.g. royalties) based on your purchase of the Proprietary Goods and include that revenue in the then-current prices that you pay for the Proprietary Goods. The revenue that we derive from Proprietary Goods includes a fee for
the use of our System and compensation for our operations, sourcing, and quality assurance functions.
[For Auntie Anne's Co-Branded Bakeries in Other Locations:] The Royalty Fee shall be (a) 6% of Net Sales that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Cinnabon® side of the Franchised Business (which will be collected by us) and (b) 7% of Net Sales that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Auntie Anne's® side of the Franchised Business ("AA Products"), which may be increased by the Co-Branded Franchisor, in its
- Section 3.2.A. (Royalty Fee):
sole discretion, at any time during the Term up to a maximum of 8% of the Net Sales that are attributable to AA Products (which will be collected by the Co-Branded Franchisor). The Royalty Fee will be payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the standard royalty fee is 6% of Net Sales. This fee is paid weekly, based on the Net Sales of the Franchised Business for the preceding week. However, the FDD also notes that the payment schedule could be different as stated in the manuals or in written notice from the franchisor.
For Cinnabon franchises co-branded with Auntie Anne's in other locations, the royalty fee structure is more complex. It consists of two parts: 6% of Net Sales attributable to products credited towards the Cinnabon side of the business, and 7% of Net Sales attributable to products credited towards the Auntie Anne's side. The Auntie Anne's portion can be increased up to 8% at the co-branded franchisor's discretion. These fees are also payable weekly.
For Cinnabon Express Bakeries, the royalty fee structure is different. Instead of paying a percentage of net sales, franchisees are required to purchase proprietary goods from designated approved suppliers. Cinnabon derives revenue (akin to royalties) from these purchases, as the price of the proprietary goods includes a fee for the use of Cinnabon's system and compensation for operations, sourcing, and quality assurance functions. This means that the franchisee's royalty obligation is embedded in the cost of supplies rather than being a separate, explicitly calculated fee.