Are Cinnabon franchisees' contributions to an Advertising Cooperative in addition to the Advertising Contribution fee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Amounts paid to an Advertising Cooperative will be credited against your Local Marketing Obligation as specified in Section 10.1.E. (Local Marketing Obligation). Any contributions that you make to an Advertising Cooperative shall be additional to your Advertising Contribution as specified in Section 3.2.B. (Advertising Contribution) and your Grand Opening Obligation as specified in Section 10.1.C. (Grand Opening Advertising). If you become delinquent in your dues or other payments to the Advertising Cooperative or fail to abide by any formal agreements or authorized decisions of the Advertising Cooperative, the delinquency or failure will be deemed a failure to participate in the Advertising Cooperative and a material breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, contributions to an Advertising Cooperative are in addition to the Advertising Contribution fee. Cinnabon franchisees are required to participate in any local, regional, or national advertising cooperative if Cinnabon requires it. However, if Cinnabon collects the entire Local Marketing Obligation from a franchisee, the franchisee will not be required to participate in an Advertising Cooperative.
The amount a Cinnabon franchisee pays to the Advertising Cooperative is determined by the franchisee, other participants, and Cinnabon, as stated in the cooperative's bylaws or membership agreements. These payments will be credited against the Local Marketing Obligation. However, any contributions to an Advertising Cooperative are in addition to the Advertising Contribution and the Grand Opening Obligation.
If a Cinnabon franchisee becomes delinquent in payments or fails to abide by the Advertising Cooperative's agreements or decisions, it will be considered a failure to participate and a material breach of the Franchise Agreement. This means Cinnabon could take action against the franchisee for non-compliance.