When are payments for Cinnabon promotions and advertising materials due?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 5 | Amount | Date Due | Remarks |
|---|---|---|---|
| Obligation from you and (i) contribute it to the Ad Fund, (ii) conduct national, regional, or local advertising, (iii) spend it on local advertising, or (iv) contribute it to your Advertising Cooperative. | |||
| Promotions and Advertising Materials | Up to 110% of our or our affiliates' actual costs and expenses related to the goods you purchase from us or them. | As incurred | You will participate at your own cost in temporary or permanent promotional campaigns that we establish (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs), which may be applicable to the System as a whole or to specific advertising market areas, and promotional programs your Advertising Cooperative establishes. We may require or permit you to purchase items from us or our affiliates necessary to participate in such campaigns, such as counter cards posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, payments for promotions and advertising materials are due as incurred. The cost for these materials can be up to 110% of the actual costs and expenses incurred by Cinnabon or its affiliates for the goods purchased.
As a Cinnabon franchisee, you are obligated to participate in both temporary and permanent promotional campaigns established by the company. These campaigns may include limited-time offers, gift cards, coupons, loyalty programs, and other marketing initiatives. These campaigns can apply system-wide or be specific to certain advertising market areas. Franchisees may also participate in promotional programs established by their local Advertising Cooperative.
To participate in these campaigns, Cinnabon may require or permit franchisees to purchase necessary items from Cinnabon or its affiliates. These items can include counter cards, posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. The costs for these materials are incurred as the franchisee participates in the promotional activities.