Is there a different Royalty Fee structure for Cinnabon franchises located in specific geographic areas?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ument. We and the Co-Branded Franchisor will jointly collect and split the other initial fees described in this Item 5.
All Initial Fees. Except as noted above, you do not pay us or our affiliates any other fees or payments for services or goods before your Bakery opens. The initial fees are not refundable.
ITEM 6 OTHER FEES
| 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 structure varies based on the type and location of the bakery. The standard Royalty Fee is 6% of Net Sales. However, for Auntie Anne's Co-Branded Bakeries in Other Locations, the Royalty Fee is structured differently.
For these co-branded locations, Cinnabon collects 6% of Net Sales attributed to Cinnabon products, while Auntie Anne's collects 7% to 8% of Net Sales attributed to Auntie Anne's products. The percentage collected by Auntie Anne's may be increased at their discretion. Additionally, 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.
The FDD specifies that "Other Locations" include malls (enclosed and open air), outlet malls and centers, Non-Traditional Locations, and ghost or delivery kitchens. This differentiated royalty structure based on location and franchise type is important for prospective franchisees to understand, as it directly impacts their ongoing costs and profitability. Franchisees should carefully consider the location and business model when evaluating the potential financial performance of a Cinnabon franchise.