What is the 'Allowed Adjustment' that Cinnabon can make to fees in any calendar year?

According to Cinnabon's 2025 Franchise Disclosure Document, the 'Allowed Adjustment' that Cinnabon can make to certain fees in any calendar year is limited to the greater of two options. Cinnabon has the option to increase a fee by either (a) 50% of the fee that was in effect at the start of the calendar year or (b) the increase in Cinnabon's or its affiliates' actual costs and expenses to provide the related goods or services to the franchisee.

This means that for certain fees, Cinnabon can raise the amount you pay each year, but there are restrictions on how much they can increase those fees. The fees subject to this 'Allowed Adjustment' include the Supply Chain Fee, Late Reporting Fee, Guest Relations Fee, Non-compliance Fee, and Failure to Comply with Standards or Law Fee.

For a prospective Cinnabon franchisee, it's important to understand which fees are subject to this 'Allowed Adjustment' and to factor in potential increases when budgeting. While a 50% increase may seem substantial, the alternative option based on actual costs and expenses could be lower (or potentially higher, depending on market conditions and Cinnabon's operational costs). It would be prudent to inquire about the historical trends of these fees and the factors that could influence future adjustments.