factual

Is the Royalty Fee payment schedule for Cinnabon Full Bakeries weekly or some other interval?

Cinnabon Franchise · 2025 FDD

Answer 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 payment schedule for Full Bakeries is weekly. Specifically, the royalty fee is 6% of Net Sales for Full Bakeries, and this is payable weekly on the date specified in the Manuals, referred to as the "Payment Due Date."

For Cinnabon Express Bakeries, the royalty fee payment schedule differs. It is due upon receipt of the invoice from Cinnabon or their designated supplier for the products. Additionally, for Auntie Anne's Co-Branded Bakeries in Other Locations, Cinnabon will collect its royalty fee, which is 6% of Net Sales, based on the portion of Net Sales attributable to products that Cinnabon and Auntie Anne's have agreed to credit to the Cinnabon side of the Co-Branded Bakery.

It's important to note that Cinnabon collects all fees due under the Franchise Agreement through Electronic Funds Transfer (EFT). Cinnabon also retains the right to change the Payment Due Date, and any other due dates, as specified in the Manuals or through written notice to the franchisee. Therefore, prospective franchisees should stay informed of any potential changes to the payment schedule.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.