Can Cinnabon change the late reporting fee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| Obligation from you and (i) contribute it to the Ad Fund, (ii) conduct national, regional, or local advertising, (iii) spend it on local advertising, or (iv) contribute it to your Advertising Cooperative. | |||
| Promotions and Advertising Materials | Up to 110% of our or our affiliates' actual costs and expenses related to the goods you purchase from us or them. | As incurred | You will participate at your own cost in temporary or permanent promotional campaigns that we establish (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs), which may be applicable to the System as a whole or to specific advertising market areas, and promotional programs your Advertising Cooperative establishes. We may require or permit you to purchase items from us or our affiliates necessary to participate in such campaigns, such as counter cards posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. |
| Insufficient Funds Fee | Up to 110% of our or our affiliates' actual costs and expenses | On invoice | If we draft money from your account under our electronic funds transfer ("EFT") or draft system, and there are insufficient funds to cover the draft, we may charge this fee, which will include any bank return charges. This fee is in addition to interest on the amount due. |
| Interest | The lesser of 1.5% per month or the maximum legal interest rate | On invoice | You must pay us or our affiliates interest on any amounts past due to us or our affiliates. |
| Late Reporting Fee | Our |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon has the ability to change the late reporting fee. The current late reporting fee is $50 per week. This fee is charged if a franchisee fails to submit timely, complete, and accurate reports, financial statements, tax returns, and statements of initial investment costs when due.
Cinnabon can modify this fee annually, but the amount of the change is limited. The FDD states that Cinnabon may change this fee in any year by no more than the Allowed Adjustment, as defined in Note 4. Note 4 was not included in the provided excerpts.
As a prospective franchisee, it is important to understand the implications of late reporting and the potential for fee increases. Franchisees should inquire about the specific definition of "Allowed Adjustment" to understand the maximum potential increase in the late reporting fee each year. Understanding these terms can help franchisees budget accurately and maintain compliance with reporting requirements.