How does Cinnabon notify franchisees of an increase in the Advertising Contribution?

According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon may increase the Advertising Contribution by providing notice to franchisees. Currently, the Advertising Contribution is 2.5% of Net Sales for Bakeries located in Other Locations, 3% of Net Sales for Bakeries located in Streetside Locations, and 3% of Net Sales for all Swirl Bakeries. No Advertising Contribution is collected for Express Bakeries in a Schlotzsky's.

It's important to note that while Cinnabon can increase the Advertising Contribution, the combined total of the Advertising Contribution and the Local Marketing Obligation cannot exceed 5% of the franchisee's Net Sales. The Local Marketing Obligation is currently set at a minimum of 1% of Net Sales each calendar quarter, which the franchisee must spend on local market advertising.

This means that Cinnabon franchisees need to be aware that their advertising expenses could potentially increase during the term of their Franchise Agreement. However, the 5% cap provides some level of predictability and protection. Franchisees should clarify with Cinnabon what form the 'notice' of an increase will take (e.g., email, certified letter) and how much advance notice they will receive prior to the change taking effect, as the FDD does not specify these details.