What is the current late reporting fee for Cinnabon?
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, 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 they are due.
Cinnabon may adjust this fee annually, but the increase cannot exceed the Allowed Adjustment as defined elsewhere in the FDD. This means that while the fee can change, there are limits to how much it can increase in a given year.
For a prospective Cinnabon franchisee, it's crucial to ensure all required reports and documents are submitted on time to avoid incurring this weekly fee. Failing to do so could result in an additional $50 expense each week, which can add up significantly over time. It is also important to understand how the 'Allowed Adjustment' is calculated to anticipate potential future increases in the late reporting fee.