Considering a Cinnabon Franchise? Don’t Overlook These 55 Important Franchise Fees

Updated November 15, 2021.

If you are considering a Cinnabon franchise, don’t get blindsided by these 55 important franchise fees (from the initial franchise fee, to the royalty fee, to 53 other fees found in Items 5 and 6 of Cinnabon’s 2021 FDD).

1.  Initial Franchise Fee:  $5,500 to $30,500

• When you sign a Franchise Agreement for a Full Bakery, you pay an initial franchise fee (the “Initial Franchise Fee”) of $30,500. When you sign a Franchise Agreement and Express Schedule for an Express Bakery, you pay an Initial Franchise Fee of $8,000. When you sign a Franchise Agreement and a Concession Schedule for a Concession Bakery, you pay an Initial Franchise Fee of $5,500.

• If you sign a Franchise Agreement and you do not have a location for your Bakery that is accepted by Cinnabon (“Accepted Location”), your Franchise Agreement will identify a trade area that Cinnabon negotiates with you in which you must locate an Accepted Location.

• Cinnabon will not refund any part of the Initial Franchise Fee paid under the Franchise Agreement.

• Cinnabon participates in the International Franchise Association’s Vet Fran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee is $20,000.

• Cinnabon reserves the right to reduce the Initial Franchise Fee under certain circumstances, including:

• (i) as an economic incentive for a franchisee to open a certain location, with the determination made on a case-by-case review of all relevant economic factors;
• (ii) as an inducement for existing operators to open additional Bakeries;
• (iii) as an inducement for someone to reopen a closed Bakery;
• (iv) as an inducement for someone to take over an operating Bakery;
• (v) as an inducement for a professional multi-unit operator to open several Bakeries; or
• (vi) to allow a franchisee to have additional money to spend on store improvements and marketing during the first 12 months of operation.

• If you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Bakeries, you must pay Cinnabon all of the Initial Franchise Fees for all of the Bakeries that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum.

• If you fail to develop any of the Bakeries by the deadlines set forth therein, or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.

• In certain rare circumstances, Cinnabon may permit installment payments of the Initial Franchise Fee on terms negotiated with the franchisee.

2.  Royalty Fee:  for Full Bakeries, Express Bakeries that are not in a Schlotzsky’s, and Concession Bakeries: 6% of Net Sales; for Express Bakeries that are in a Schlotzsky’s, the then-current price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products you purchase from Cinnabon or its designated Supplier

• Due Date:  For Full Bakeries, payable by the 10th day of each month on Net Sales for the prior period; for Express Bakeries, on receipt of Cinnabon’s invoice or its designated Supplier’s invoice for the products.

3.  Advertising Contribution:  1.5% of Net Sales for Bakeries located in Other Locations but Cinnabon may adjust this amount up to 3% of Net Sales at any time. 3% of Net Sales for Bakeries located in Streetside Locations. Not charged for Express Bakeries that are located in a Schlotzsky’s.

• Due Date:  Same as Royalty Fee.

4.  Adverting Cooperative Contribution:  an amount set by your Advertising Cooperative

• Due Date:  Same as Royalty Fee.

5.  Local Marketing Obligation:  currently, each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising

• Due Date:  Each calendar quarter.

6.  Promotions:  costs to purchase, lease, and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, and gift cards. Cinnabon may charge you its costs plus a reasonable administrative fee.

• Due Date:  As incurred.

7.  Insufficient Funds Fee:  Cinnabon’s out-of-pocket costs and an administrative fee

• Due Date:  On invoice.

• If Cinnabon drafts money from your account under its electronic funds transfer (“EFT”) or draft system, and there are insufficient funds to cover the draft, it will charge you the return costs charged by its bank and an administrative fee to cover its costs of addressing the nonpayment.

• This fee is in addition to interest on the amount due.

8.  Interest:  the lesser of 1.5% per month or the maximum legal interest rate

• Due Date:  On invoice.

• You must pay Cinnabon or its affiliates interest on any amounts past due to it or its affiliates.

9.  Late Reporting Fee:  Cinnabon’s then-current fee. Currently, $50 per day.

• Due Date:  On invoice.

• You must pay this late fee if you fail to submit timely, complete, and accurate reports, financial statements, tax returns, and a statement of initial investment costs when due.

10.  Taxes and Other Payments:  Cinnabon’s cost

• Due Date:  Within 10 days after demand.

• You must pay Cinnabon or its affiliates (i) all sales taxes, corporate taxes, and any similar taxes paid by it on your behalf, imposed on it, or required to be collected by it on account of products or services it furnishes to you (through sale, lease, or otherwise) or on account of its collection of any fee related to the Franchise Agreement; (ii) all franchise or similar taxes, whether based on gross receipts, gross revenues, Royalty Fees, Advertising Contributions, or otherwise, imposed on, required to be collected by, or paid by Cinnabon; (iii) all marketplace facilitator or similar taxes imposed on, required to be collected by, or paid by Cinnabon in connection with your use of its website, internet sites, applications, or online ordering platforms; (iv) all other amounts Cinnabon pays or must pay for you for any reason; and (v) any other fees or expenses that Cinnabon is entitled to collect from you.

11.  Subsequent Trainee Initial Training Fee:  currently, up to $500 per trainee

• Due Date:  Before attending training.

12.  On-Site Training and Assistance:  a reasonable fee, currently $50 per hour per trainer, plus a trainer’s travel and living expenses

• Due Date:  On invoice.

13.  Additional Support/Consulting Fee:  a reasonable fee, currently $500 per day, plus travel and living expenses

• Due Date:  On invoice.

14.  Conference/Program Fee:  a reasonable fee, which will vary by program

• Due Date:  As incurred.

• Cinnabon may charge you a reasonable fee for any conferences, conventions, programs, or training sessions that it conducts. Cinnabon expects these fees to range from $0 to $2,500.

15.  Training Cancellation Fee:  Cinnabon’s out-of-pocket costs

• Due Date:  On invoice.

16.  Electronic Learning Management System:  the then-current fee. Currently, Cinnabon estimates the cost will be $200 annually.

• Due Date:  As incurred.

• Cinnabon requires you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. Cinnabon may require you to pay this fee to it, an affiliate, or a third-party vendor.

17.  Carvel Product Platform Training Fee:  Cinnabon may charge a reasonable fee up to $750

• Due Date:  On invoice.

• If you offer Carvel products at the Bakery, Cinnabon may require you to pay it a training fee for its representatives to provide two days of related on-site training.

18.  Plan Review Fee:  $1,000 per set of drawings

• Due Date:  On invoice.

• After Cinnabon’s initial review of your Bakery plans at no cost and a review of a revision incorporating Cinnabon’s comments at no cost, Cinnabon may charge a fee of $1,000 for each additional set of drawings it reviews that includes any modifications from the plans that it has previously accepted.

19.  Lease Renewal/Extension Review Fee:  Cinnabon’s then-current fee. Currently, $2,000.

• Due Date:  As incurred.

• If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain Cinnabon’s approval of the lease and, in Cinnabon’s sole discretion, pay this fee, which Cinnabon may change from time to time.

• Cinnabon’s review of the lease will be limited to determining whether it complies with the Franchise Agreement.

20.  Lease Documentation Late Fee:  $500 per month (or partial month) until delivered

• Due Date:  As incurred.

• Cinnabon may charge you this fee if you fail to provide it with a signed copy of any lease or a modification, amendment, or renewal of a lease within 15 days after its execution.

• The fee is payable for each month or partial month after the deadline, until you provide the documentation.

21.  Satellite Retail Unit (SRU) Fees:  monthly rental fee, which may be calculated as (i) a flat dollar amount or (ii) a percentage of Net Sales derived from the SRU (currently, 8%), up to a maximum dollar amount (currently, $1,600 to $2,500)

• Due Date:  On invoice.

• Auntie Anne’s administers the program and the rental fee is payable to Auntie Anne’s.

• If Cinnabon grants you the right to operate a SRU, you agree to participate in the SRU program for a minimum of 12 months and to utilize Cinnabon’s POS System. If you cancel the SRU within the first 12 months, you will be responsible for rental payments through the 12-month period.

22.  Relocation Fee:  10% of the then-current Initial Franchise Fee

• Due Date:  Before Cinnabon signs relocation Franchise Agreement.

23.  Relocation Extension Fee:  $1,500 per year that the term is extended

• Due Date:  Before Cinnabon signs relocation Franchise Agreement.

• If you relocate to a new site and Cinnabon agrees to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee.

24.  Refresh/Remodel Site Survey and Design Fee:  Cinnabon’s then-current fee. Currently, such fee is approximately $1,200 to $6,000 depending on the scope of the required changes.

• Due Date:  As incurred.

• You must refresh your Bakery every five years and must remodel your Bakery every ten years to meet Cinnabon’s then-current Standards.

• Cinnabon may require you to pay it, its affiliates, or its designee this fee to inspect your Bakery and produce a site survey and/or design plan that will comply with these obligations.

25.  Refresh/Remodel Site Survey and Design Solution Fee:  Cinnabon’s then-current fee. Currently, Cinnabon does not charge this fee, but it estimates that such fee, if charged today for a remodel, would be approximately $4,000.

• Due Date:  As incurred.

• You must refresh your Bakery every five years and must remodel your Bakery every ten years to meet Cinnabon’s then-current Standards.

• Cinnabon may require you to pay it, its affiliates, or its designee this fee to inspect your Bakery and produce a site survey and design solution that will comply with these obligations.

26.  Transfer Fee:  50% of the then-current Initial Franchise Fee if it is a Control Transfer; if it is a transfer to a related party or that is not a Control Transfer, 10% of the then-current Initial Franchise Fee

• Due Date:  At transfer closing.

27.  Renewal Fee:  20% of the then-current Initial Franchise Fee for the type of Bakery you will operate

• Due Date:  Before Cinnabon signs renewal Agreement.

28.  Computer Systems Fee:  a reasonable fee, which will vary based on the services provided

• Due Date:  As needed.

• Paid to contractors or to Cinnabon or its affiliates, as applicable. Cinnabon may charge a reasonable systems fee for modifications and enhancements and other maintenance and support services.

29.  POS System Support Fee:  currently, estimated to be between $50 and $250 per month

• Due Date:  As incurred.

• You must remit this fee to Cinnabon or its affiliate (or a third-party vendor approved by it) for software and hardware support for your POS System.

30.  Mobile Device Management Software License Fee:  currently, estimated to be between $6 and $30 per month

• Due Date:  As incurred.

• Mobile device management software is required to be installed on each POS System and customer display system (such as a guest-facing or crew-facing iPad).

31.  Back Office and Polling Software Fee:  currently, not charged. Estimated to be between $100 and $200 per month

• Due Date:  As incurred.

• Currently, Cinnabon does not, but in the future it may, require you to remit this fee to it, its affiliate, or a third-party vendor that provides the back office and polling software for your Computer System.

32.  Credit Card Fees:  transaction fees estimated to be from 2.5% to 5% of transaction amounts. Other fees may apply depending on the vendor used for credit card processing.

• Due Date:  As incurred.

33.  Information Security and Compliance Fees:  amount of fees; estimated to be between $75 and $150 per month

• Due Date:  As incurred.

34.  Gift Card and Loyalty Program Fees:  amount of administrative fees

• Due Date:  As incurred.

• You must participate in the gift card, loyalty, and other electronic incentive programs (the “Gift Card and Loyalty Programs”) that Cinnabon establishes, using vendors that Cinnabon designates, which may include Cinnabon or its affiliates.

35.  Loyalty App Fee:  currently, not charged. Estimated to be $45 per month.

• Due Date:  As incurred.

36.  Online Ordering Fee:  currently, $45 per month

• Due Date:  As incurred.

• You must participate in Cinnabon’s online ordering program.

37.  Ordering Support Fee:  a reasonable fee, which will vary based on the services provided. Currently, $0.35 to $0.50
per transaction processed through Cinnabon’s online ordering system.

• Due Date:  As incurred.

38.  Purchasing Program Fee:  reasonable membership fees assessed by the Purchasing Program

• Due Date:  As incurred.

• If Cinnabon designates or establishes any purchasing and/or distribution cooperatives/associations/programs (“Purchasing Programs”), you must become a member and pay any membership fees assessed.

• Cinnabon currently does not have any Purchasing Programs which require membership fees.

39.  Supply Chain Fee:  currently, $0.17 to $0.27 per case purchased through certain Appointed Distributors

• Due Date:  As incurred.

40.  Master Insurance Policy Fee:  currently not charged; Cinnabon does not have an estimate at this time

• Due Date:  As incurred.

• Cinnabon reserves the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to Cinnabon or its Approved Supplier.

41.  Insurance:  amount of unpaid premiums and Cinnabon’s costs

• Due Date:  On demand.

• Payable only if you fail to maintain required insurance coverage and Cinnabon elects to obtain coverage for you.

42.  Guest Relations Fee:  currently, $20 to $40 for each guest complaint or other contact request that you do not timely respond to or for each excessive guest complaint

• Due Date:  On invoice.

43.  Non-Compliance Fee:  currently, $25 to $500 for a single default, but may vary based on the severity of defaults, number of defaults, and repetition of defaults

• Due Date:  On invoice.

44.  Failure to Comply with Standards or Law Fee:  up to a $5,000 fee plus Cinnabon’s reasonable expenses connected with any inspection, examination, or analysis of products

• Due Date:  On invoice.

45.  Development Deadline Extension Fee:  $2,500 per missed deadline

• Due Date:  On invoice.

• Payable if you fail to meet the Site Approval Deadline, Construction Start Deadline, or Opening Deadline or if Cinnabon grants you an extension to any of these deadlines.

• Cinnabon may terminate the Franchise Agreement if you fail to open by the Opening Deadline or if you fail to cure a default of the Site Approval or Construction Start Deadlines.

46.  Repeated Inspection Fee:  cost of inspection

• Due Date:  On invoice.

• If Cinnabon or its representative inspects you as a result of your repeated or continuing failure to comply with any provision of the Franchise Agreement, you must pay Cinnabon the cost of the inspection, including the travel and living expenses of its representatives.

47.  Audit:  cost of audit

• Due Date:  On invoice.

48.  Reimbursement of Services After Default:  all costs and expenses that Cinnabon reasonably incurs

• Due Date:  On invoice.

• Payable if you default under the Franchise Agreement and Cinnabon, in its sole discretion, undertakes or performs on your behalf any obligation or duty that you are required to, but fail to, perform under the Franchise Agreement.

49.  Liquidated Damages (Full Bakery or Concession Bakery):  the average monthly amount of Royalty that you owed Cinnabon during the past 36 months times the lesser of remainder of the term of the Franchise Agreement or 36 months

• Due Date:  Within 30 days of termination of your Franchise Agreement.

• You must pay this fee only if the termination occurs after the opening date of your Bakery and you are not insolvent at the time of termination.

• If less than 36 months have passed since opening and termination, the amount will be the average amount you paid per month to purchase Proprietary Goods during the time between opening and termination, times the lesser of remainder of the term of the Franchise Agreement or 36 months.

50.  Liquidated Damages (Express Bakery):  the average amount you paid per month to purchase Proprietary Goods during the past 36 months times the lesser of remainder of the term of the Franchise Agreement or 36 months. If less than 36 months have passed since opening and termination, the amount will be the average amount you paid per month to purchase Proprietary Goods during the time between opening and termination, times the lesser of remainder of the term of the Franchise Agreement or 36 months.

• Due Date:  Within 30 days of termination of your Franchise Agreement.

51.  Appraiser’s Fee:  50% of appraiser’s fee

• Due Date:  On invoice.

• You must pay this fee only if Cinnabon elects to purchase your assets on termination or expiration of the Franchise Agreement and it cannot agree with you on the purchase price.

52.  Indemnification of Cinnabon:  Cinnabon’s cost

• Due Date:  On invoice.

• You indemnify Cinnabon from certain losses and expenses under the Franchise Agreement.

53.  Attorneys’ Fees:  Cinnabon’s cost

• Due Date:  On invoice.

• You must pay Cinnabon any attorneys’ fees it incurs related to you, your Owners, or your Bakery (other than those Cinnabon incurs in response to your efforts to enforce the Franchise Agreement or in the defense of any claim it asserts against you on which you substantially prevail in court or other formal legal proceedings).

• If Cinnabon becomes a party to a proceeding on an agreement between it and you, and it wins, or if it becomes a party to litigation or insolvency proceedings for your franchise, then you must pay Cinnabon’s reasonable attorneys’ fees and court costs.

54.  Reinstatement Fee:  10% of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement

• Due Date:  Before reinstatement.

• If Cinnabon terminates your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and Cinnabon agrees to reinstate your Franchise Agreement, you must pay Cinnabon a reinstatement fee.

55.  De-identification Fee:  Cinnabon’s actual costs, plus interest and an administrative fee equal to 15% of its actual costs

• Due Date:  On invoice.

• Payable if Cinnabon terminates the Franchise Agreement, you fail to de-identify the Bakery, and Cinnabon makes the required changes on your behalf.