What options does Cinnabon have regarding how advertising fees are used?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 rig |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are required to contribute to advertising. The amount of the advertising contribution varies based on the type of Cinnabon bakery. For bakeries in Other Locations (except Auntie Anne's Co-Branded Bakeries), the contribution is currently 2.5% of Net Sales. For Auntie Anne's Co-Branded Bakeries in Other Locations, it is 2.5% of Net Sales attributed to Cinnabon and 2% of Net Sales attributed to Auntie Anne's. Bakeries in Streetside Locations and Swirl Bakeries (at any location) both contribute 3% of Net Sales. Express Bakeries in a Schlotzsky's are not charged an advertising contribution.
Cinnabon has the option to increase the advertising contribution at any time by providing notice to franchisees, with the exception of Express Bakeries in a Schlotzsky's. However, the combined advertising contribution and local marketing obligation cannot exceed 5% of a franchisee's Net Sales. For Co-Branded Bakeries, Cinnabon collects the advertising contribution based on the portion of Net Sales attributed to Cinnabon products, while the Co-Branded Franchisor collects a separate advertising contribution based on the portion of Net Sales attributed to its products.
In addition to the advertising contribution, franchisees may also be members of an Advertising Cooperative. The contribution amount for the Advertising Cooperative is set by the cooperative itself. All members of the cooperative, including franchisee-owned, company-owned, and affiliate-owned bakeries, have voting rights within the cooperative.