How soon after demand must a Cinnabon franchisee pay taxes and other payments?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Taxes and Other Payments | Our costs and expenses | Within 10 days after demand | You must pay us or our affiliates (i) all sales taxes, corporate taxes, and any similar taxes paid by us on your behalf, imposed on us, or required to be collected by us on account of products or services we furnish to you (through sale, lease, or otherwise) or on account of our collection of any fee related to the Franchise Agreement; (ii) all franchise or similar taxes, whether based on gross receipts, gross revenues, Royalty Fees, Advertising Contributions, or otherwise, imposed on, required to be collected by, or paid by us; (iii) all marketplace facilitator or similar taxes imposed | | Type of Fee1, 5 | Amount | Date Due | Remarks | |-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | on, required to be collected by, or paid by us in connection with your use of our website, internet sites, applications, or online ordering platforms; (iv) all other amounts we pay or must pay for you for any reason; and (v) any other fees or expenses that we are entitled to collect from you.
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are required to pay taxes and other payments within 10 days after demand. This includes sales taxes, corporate taxes, and similar taxes that Cinnabon pays on the franchisee's behalf, or is required to collect due to products or services furnished to the franchisee. It also covers franchise taxes based on gross receipts, royalty fees, advertising contributions, or other factors that Cinnabon is required to collect or pay.
This obligation extends to marketplace facilitator taxes related to the franchisee's use of Cinnabon's website, internet sites, applications, or online ordering platforms. Additionally, franchisees must reimburse Cinnabon for any other amounts Cinnabon pays or must pay on their behalf for any reason, as well as any other fees or expenses that Cinnabon is entitled to collect from them.
In practical terms, this means a Cinnabon franchisee needs to maintain sufficient cash flow to cover these tax and payment obligations promptly upon receiving a demand from Cinnabon. Failure to do so within the 10-day period could potentially lead to penalties or other repercussions as outlined in the Franchise Agreement. Franchisees should ensure they understand what triggers a 'demand' and how it will be communicated by Cinnabon to avoid any late payment issues.