What discretion does Cinnabon have regarding the use of amounts received from manufacturers, Suppliers, or third parties based on Cinnabon franchisee purchases?

According to the 2025 Cinnabon Franchise Disclosure Document, Cinnabon and its affiliates have broad discretion over the use of revenues they receive from manufacturers, suppliers, or other third parties. These revenues may be based on franchisee purchases.

Specifically, Cinnabon can use these funds without restriction for any purpose they or their affiliates deem appropriate. This includes situations where the payments are tied to a franchisee's actual or prospective dealings with those manufacturers, suppliers, or third parties.

This arrangement means that Cinnabon franchisees may not directly benefit from discounts, allowances, or other payments Cinnabon receives from suppliers based on the franchisee's purchases. The franchisor has the freedom to allocate these funds as they see fit, which may or may not align with the individual franchisee's interests. This is a common practice in franchising, where franchisors often negotiate volume discounts or rebates and retain the benefits to support system-wide initiatives or their own profitability.