Is a Cinnabon franchisee required to participate in promotional campaigns established by the franchisor or Advertising Cooperative, and who bears the costs associated with participation?

You are required to participate in these promotional programs at your own cost, including the costs to purchase, lease and install all materials necessary to participate in the promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, and gift cards.

A. Participation. You will participate, if we require, in any local, regional, or national cooperative advertising group consisting of other Businesses (an "Advertising Cooperative") that we specify, when and if any of these groups are created. We will designate the particular Advertising Cooperative(s) in which you may be required to participate (which designations may be based on, without limitation, the particular Designated Market Area or the Area of Dominant Influence, as those terms are used in the advertising industry, where your Franchised Business is located). If we collect the entire Local Marketing Obligation, we will not require you to participate in an Advertising Cooperative. You will enter into any formal agreements with the other franchisees of the System and/or us, as the case may be, as is necessary or appropriate to accomplish the goals of this Section 10.4 and you must abide by the formal agreements and decisions that we authorize the Advertising Cooperative to make on advertising and marketing in the area covered by the Advertising Cooperative.

Source: Item 23 — Receipts (FDD pages 114–399)