Are there any circumstances where the Cinnabon Royalty Fee might be waived or reduced?
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. |
Notes
Unless otherwise stated, we directly impose all the fees in this table, you pay them to us, and we do not refund them.
We endeavor to impose these fees uniformly but reserve the right to make variances in special circumstances.
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- "Net Sales" means all revenues generated by your Bakery or conducted from or with respect to the Bakery, whether the sales are evidenced by cash, check, credit, charge, account, barter or exchange.
Net Sales includes monies, gift card redemptions, or credit generated by or received from (i) the sale of Approved Products or tangible property of every kind and nature, promotional or otherwise, anywhere and (ii) services performed from, at, or in connection with the Bakery, including (x) off-premises services (such as catering and delivery), (y) on-premises services (such as games, gambling machines, or third-party advertising within the Bakery), or (z) any other services or activities that use either the System, the Marks, or products that are the same as or similar to the Approved Products.
Net Sales will not include (a) the initial sales or reloading of gift cards, (b) discounts, (c) the sale of food or merchandise for which refunds have been made in good faith to customers, (d) the discounted portion of employee meals, (e) sales, meals, use or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority, (f) the sale of equipment used in the operation of the Bakery, or (g) tips.
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the standard royalty fee is 6% of Net Sales. However, the royalty fee structure varies for different types of Cinnabon bakeries. For Auntie Anne's Co-Branded Bakeries in Other Locations, the royalty is 6% of Net Sales attributed to Cinnabon products and 7% (which Auntie Anne's may increase to 8%) of Net Sales attributed to Auntie Anne's products. For Express Bakeries in a Schlotzsky's, the royalty fee is the then-current product price per case.
'Net Sales' is defined as all revenues generated by the bakery, including sales of approved products and services, whether paid in cash, credit, or other forms. Net Sales includes monies, gift card redemptions, or credit generated by or received from (i) the sale of Approved Products or tangible property of every kind and nature, promotional or otherwise, anywhere and (ii) services performed from, at, or in connection with the Bakery, including (x) off-premises services (such as catering and delivery), (y) on-premises services (such as games, gambling machines, or third-party advertising within the Bakery), or (z) any other services or activities that use either the System, the Marks, or products that are the same as or similar to the Approved Products.
Net Sales does not include items such as the initial sales or reloading of gift cards, discounts, refunds made in good faith, discounted employee meals, sales, meals, use or excise tax imposed by a governmental authority directly on sales and collected from customers, the sale of equipment used in the operation of the Bakery, or tips. Cinnabon endeavors to impose fees uniformly but reserves the right to make variances in special circumstances.
Prospective franchisees should note the different royalty structures based on the type of Cinnabon location they are considering. Understanding how Net Sales is calculated, including what is included and excluded, is crucial for accurately forecasting revenue and royalty obligations. The possibility of variances in special circumstances, while not defined, suggests that Cinnabon retains some flexibility in adjusting fees, although this is not a guarantee.