How often must a Cinnabon franchisee report Net Sales?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
rrent price per case of freezer-proofer-oven rolls or other approved proprietary Cinnabon products you purchase from us or our designated Supplier. | | Advertising Contribution | Bakeries in Other Locations (except Auntie Anne's Co | Payment Due Date | See Note 3 for the definition of "Other Locations" and "Streetside Locations." |
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| Branded Bakeries): Currently, 2.5% of Net Sales Auntie Anne's Co Branded Bakeries in Other Locations: Currently, 2.5% of Net Sales attributed to Cinnabon and 2% of Net Sales attributed to Auntie Anne's Bakeries in Streetside Locations: Currently, 3% of Net Sales Swirl Bakeries (any location): Currently, 3% of Net Sales Express Bakeries in a Schlotzsky's: Not charged | You must contribute the Advertising Contribution to the Ad Fund (as defined in Item 11). For all Bakeries, except Express Bakeries in a Schlotzsky's, we may increase the Advertising Contribution at any time by notice to franchisees. However, your required Advertising Contribution and Local Marketing Obligation (as defined below) may not collectively exceed 5% of your Net Sales. This table indicates the current Advertising Contributions and already-announced scheduled increases. For Co-Branded Bakeries, we will collect the Advertising Contribution based on the portion of Net Sales attributable to products that we and Co Branded Franchisor have agreed to credit to the Cinnabon side of the Co-Branded Bakery, and the Co-Branded Franchisor will collect a separate advertising contribution (as specified in its Disclosure Document) based on the portion of Net Sales attributable to products that we and the Co Branded Franchisor have agreed to credit to the Co-Branded Franchise's side of the Co-Branded Bakery. | ||
| Advertising Cooperative Contribution | An amount set by your Advertising Cooperative | Payment Due Date | All members of an Advertising Cooperative (as defined in Item 11), whether a franchisee-owned, company-owned or affiliate-owned Bakery, have voting rights on matters brought before the Advertising Cooperative for a vote, including matters relating to the amount of the required Advertising Cooperative contribution. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are obligated to spend a minimum of 1% of Net Sales on local market advertising each calendar quarter. This obligation is part of the broader financial responsibilities that Cinnabon franchisees must manage to maintain compliance with the franchise agreement. These reports are used to calculate royalty fees and advertising contributions.
In addition to the local marketing obligation, Cinnabon franchisees must also contribute to the Ad Fund, with the amount varying based on the type of bakery. For instance, Branded Bakeries currently contribute 2.5% of Net Sales, while Streetside Locations contribute 3%. These contributions, along with the Local Marketing Obligation, cannot collectively exceed 5% of the franchisee's Net Sales. Accurate and timely reporting of Net Sales is therefore crucial for determining these payments.
Failure to submit timely, complete, and accurate reports can result in a Late Reporting Fee. The current fee is $50 per week. This fee underscores the importance of adhering to the reporting schedule set by Cinnabon. Franchisees should ensure they have systems in place to track and report Net Sales accurately to avoid incurring additional costs. The FDD does not specify how often franchisees must report net sales, but it does state that a late fee is charged if reports are not submitted when due.