Under what condition is a Cinnabon franchisee required to become a member of a Purchasing Program?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| not exceed 110% of our or their actual costs and expenses. | |||
| Technology Fee | Our then-current fee, which may be based on a percentage of Net Sales, fixed fees, and/or usage fees. Currently, we do not collect this fee. | As incurred | We may require you to pay us, or a third party we designate, a Technology Fee to defray our costs of developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that we, in our sole discretion, deem appropriate. This fee may replace or supplement other technology-related fees in this table. The fee may be modified from time to time, but it will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services. |
| Purchasing Program Fee | A reasonable membership fee assessed by the Purchasing Program. | As incurred | If we designate or establish any purchasing and/or distribution cooperatives/ associations/ programs ("Purchasing Programs"), you must become a member and pay any membership fees assessed. We currently do not have any Purchasing Programs which require membership fees Any membership fees set by us or our affiliates charge will not exceed 110% of our or their actual costs and expenses. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee is required to become a member of a Purchasing Program if Cinnabon designates or establishes any purchasing and/or distribution cooperatives/associations/programs. In this case, the franchisee must become a member and pay any membership fees assessed by the Purchasing Program.
Currently, Cinnabon does not have any Purchasing Programs that require membership fees. However, the FDD states that any membership fees set by Cinnabon or its affiliates will not exceed 110% of their actual costs and expenses.
This means that while there are no mandatory Purchasing Programs at the moment, Cinnabon retains the right to implement them in the future. If they do, franchisees will be obligated to join and pay the associated fees, which are capped at 110% of Cinnabon's or its affiliates' costs. Prospective franchisees should inquire about the likelihood and potential structure of such programs to better understand potential future costs.