Is there an Advertising Contribution for Cinnabon Express Bakeries in a Schlotzsky's?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We will allocate your Advertising Contributions to a fund for the advertising and promotion of the Bakeries, Marks, and the System (the "Ad Fund"). Currently, you must make an Advertising Contribution to the Ad Fund in the amount of 2.5% of Net Sales for Bakeries located in Other Locations, 3% of Net Sales for Bakeries located in Streetside Locations, and 3% of Net Sales for all Swirl Bakeries. We do not collect an Advertising Contribution for Express Bakeries in a Schlotzsky's. We may increase the Advertising Contribution by notice to franchisees. However, your required Advertising Contribution and Local Marketing Obligation will collectively not exceed 5% of your Net Sales. Your Advertising Contribution is in addition to your Local Marketing Obligation (as defined below) and your Grand Opening Obligation (as defined below).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, franchisees operating an Express Bakery within a Schlotzsky's location are exempt from the standard advertising contribution.
For other Cinnabon locations, the advertising contribution varies. Bakeries in "Other Locations" are required to contribute 2.5% of Net Sales, while those in "Streetside Locations" and all "Swirl Bakeries" must contribute 3% of Net Sales. Cinnabon retains the right to increase these contribution rates with notice to franchisees, but the combined advertising contribution and local marketing obligation will not exceed 5% of Net Sales.
This advertising contribution is allocated to the Ad Fund, which Cinnabon uses for advertising and promotion of the Bakeries, Marks, and the System. Cinnabon is not obligated to maintain the Ad Fund in a separate account. The FDD specifies that other franchisees may have different contribution rates or may not be required to contribute at all. Franchisees should confirm with Cinnabon the current advertising contribution requirements for their specific location type.