What is the timeframe, relative to the Opening Date, during which a Cinnabon franchisee must fulfill the Grand Opening Obligation?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ing and marketing policies that we periodically specify. You may not market or advertise in violation of federal laws regulating advertising, such as the CAN-SPAM Act and the TCPA, and state advertising laws applicable to your Franchised Business.
B. Submission and Review of Proposed Content. Except as otherwise provided in the Manuals and for Advertising and Promotional Content that we furnish to you, you must submit to us for our written approval, before use, copies of all proposed Advertising and Promotional Content that you intend to use or implement. We have the right to approve or disapprove any Advertising and Promotional Content, as well as the media in which intend to use them, in our sole discretion. We reserve the right to require you to discontinue the use of any Advertising and Promotional Content for any reason.
C. Grand Opening Advertising.
- (i) Grand Opening Obligation. You must spend at least the amount specified in Schedule A on grand opening advertising promoting the opening of your Franchised Business within the period beginning 90 days before the Opening Date and ending 90 days after the Opening Date (the "Grand Opening Obligation"). Alternatively, we may, in our sole discretion, require you to pay the Grand Opening Obligation to us or the Ad Fund for us to spend in accordance with a grand opening advertising plan that we designate or approve. The Grand Opening Obligation is in addition to your Advertising Contribution and any local advertising obligations you may have. If you relocate the Franchised Business pursuant to Section 5.5 (Relocation of the Franchised Business), we may require you to comply with the Grand Opening Obligation again.
- (ii) Conducting Grand Opening.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee is obligated to conduct grand opening advertising for their new Cinnabon franchise within a specific timeframe. This timeframe starts 90 days before the store's opening date and extends until 90 days after the opening date. This entire period is referred to as the "Grand Opening Obligation".
This obligation requires the franchisee to spend a specified amount on advertising to promote the new Cinnabon location. The exact amount required for this grand opening advertising is detailed in Schedule A of the Franchise Agreement. However, the FDD excerpts do mention different amounts for different types of locations, such as $3,000 for other locations, $6,000 for other locations, $7,500 for streetside locations, $15,000 for streetside locations, and $25,000 for the first four streetside locations in emerging markets. The franchisee has to get Cinnabon's approval for their grand opening advertising plan at least 30 days before the advertising campaign starts and must use only approved advertising content.
Cinnabon also retains the option to manage the grand opening advertising themselves. In this case, they may require the franchisee to pay the Grand Opening Obligation amount to Cinnabon or its Ad Fund. Cinnabon would then use these funds to execute a grand opening advertising plan that they designate or approve. This grand opening obligation is separate from the franchisee's ongoing advertising contribution and any local advertising requirements.
If a Cinnabon franchisee fails to meet their advertising expenditure obligations, Cinnabon has the right to either require the franchisee to spend the remaining amount on local marketing advertising or spend the amount themselves on promoting the opening of the franchise, with the franchisee required to reimburse them for these expenses. If the franchisee relocates their business, Cinnabon may require them to comply with the Grand Opening Obligation again.