Is Cinnabon obligated to conduct any advertising?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Advertising. We are not obligated to conduct any advertising. We may periodically formulate, develop, produce, and conduct, at our sole discretion, advertising or promotional programs in such forms and media as we determine to be most effective. We may make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon is not obligated to conduct any advertising. However, Cinnabon retains the option to periodically create and conduct advertising or promotional programs using various media platforms as they deem most effective. They may also offer franchisees the opportunity to purchase approved advertising and promotional materials.
Franchisees are required to contribute to an Ad Fund, with the contribution amount varying based on the location type. Bakeries in Other Locations contribute 2.5% of Net Sales, while Bakeries in Streetside Locations and all Swirl Bakeries contribute 3% of Net Sales. Express Bakeries in a Schlotzsky's do not have an advertising contribution. Cinnabon can increase the advertising contribution with notice, but the combined Advertising Contribution and Local Marketing Obligation will not exceed 5% of Net Sales.
Cinnabon does not have an advertising council composed of franchisees that is involved in decision making on advertising issues, but the Cinnabon Franchise Advisory Council provides suggestions on advertising issues. Franchisees are required to participate in any local, regional, or national cooperative advertising group if created by Cinnabon. Franchisees are also obligated to spend on grand opening advertising, with a minimum of $3,000 for Bakeries in Other Locations and $7,500 for Bakeries in Streetside Locations. For Co-Branded Bakeries, the Grand Opening Obligation is $6,000 in Other Locations and $15,000 (or $25,000 for one of the first four Co-Branded Bakeries in an Emerging Market) in Streetside Locations.