Will Cinnabon provide an independent audit of the Ad Fund?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that: (i) we need not maintain the Ad Fund, your Advertising Contributions, or income earned from contributions to the Ad Fund in a separate account from our other funds; (ii) we are not a fiduciary with respect to your Advertising Contributions or the Ad Fund; and (iii) the Ad Fund is not a "trust." We are not required to have an independent audit of the Ad Fund completed.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon is not required to have an independent audit of its Ad Fund completed. The Ad Fund is used for advertising and promotion of the Businesses, the Marks, and the System. Cinnabon will allocate franchisee advertising contributions to this fund. Cinnabon does not need to maintain the Ad Fund in a separate account and is not considered a fiduciary or trustee with respect to the fund. Franchisees acknowledge that other franchisees may contribute to the Ad Fund at different rates or may not be required to contribute at all. Cinnabon has sole authority over advertising programs and promotions and is not obligated to ensure that expenditures from the Ad Fund are proportionate or equivalent to franchisee contributions.