What specific fees are included in Cinnabon's franchise revenue?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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SCHEDULE A
FRANCHISE SPECIFIC TERMS
(CINNABON® EXPRESS BAKERY)
| Severity Level | Example of Issue or Request | Target Resolution Timeframe | |
|---|---|---|---|
| Critical | All terminals or scanners down; unable to process credit; or online ordering down | 4 hours (response within 15 minutes of request) | |
| High Severity | One terminal or scanner down; credit spooling offline; firewall issue; or VoIP phones (for supported stores) | 1-2 business days | |
| Medium Severity | Front Counter POS peripherals down; third party printer down; sales or labor reports unavailable; or end-of-day issues | 2-3 business days | |
| Low Severity | Additional hardware request; menu maintenance; or general technology inquiries | 3-5 business days | 7. Section 1.4.A. (Owners of Equity): Below is a complete list of your Owne |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, the franchise revenue includes the initial franchise fee and revenue derived from the purchase of proprietary goods. While franchisees are not explicitly required to pay a royalty fee, Cinnabon generates revenue when franchisees purchase proprietary goods from approved suppliers. This revenue is factored into the price of these goods. This revenue serves as compensation for the use of Cinnabon's system, as well as for their operations, sourcing, and quality assurance efforts.
Additionally, while franchisees are not required to make an advertising contribution, Cinnabon may still derive revenue from advertising-related activities. The FDD specifies that franchisees must pay a recurring, non-refundable advertising contribution, which is separate from the Grand Opening Obligation and Local Marketing Obligation.
For co-branded bakeries, the royalty fee structure varies. For Auntie Anne's co-branded bakeries in other locations, the royalty fee is 6% of net sales attributable to products credited towards the Cinnabon side and 7% of net sales attributable to Auntie Anne's products. For Auntie Anne's co-branded bakeries in streetside locations and Carvel co-branded bakeries, the royalty fee is 6% of the net sales of the franchised business. These fees are collected jointly by Cinnabon and the co-branded franchisor.