What is the standard Royalty Fee for a Cinnabon franchise?
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 the 2025 Cinnabon Franchise Disclosure Document, the standard royalty fee is 6% of Net Sales for full bakeries. This fee is paid weekly. However, there are exceptions for co-branded locations and express bakeries.
For Auntie Anne's Co-Branded Bakeries in Other Locations, the royalty fee is structured differently. Cinnabon collects 6% of Net Sales attributed to Cinnabon products, while Auntie Anne's collects a separate royalty fee of 7% to 8% of Net Sales attributed to Auntie Anne's products. The percentage collected by Auntie Anne's may increase at their discretion.
For Express Bakeries located within a Schlotzsky's, the royalty fee is based on the then-current product price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products purchased from Cinnabon or its designated supplier. This means the royalty is tied directly to product purchases rather than a percentage of overall sales.
It is important for prospective franchisees to understand which royalty structure applies to their specific type of Cinnabon bakery, as the method of calculation and payment can vary significantly. Franchisees should also be aware of the definitions of "Net Sales" and "Other Locations" as defined in the notes of the Franchise Disclosure Document to fully understand how these fees are applied.