What triggers the Cinnabon late reporting fee?
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. |
| Insufficient Funds Fee | Up to 110% of our or our affiliates' actual costs and expenses | On invoice | If we draft money from your account under our electronic funds transfer ("EFT") or draft system, and there are insufficient funds to cover the draft, we may charge this fee, which will include any bank return charges. This fee is in addition to interest on the amount due. |
| Interest | The lesser of 1.5% per month or the maximum legal interest rate | On invoice | You must pay us or our affiliates interest on any amounts past due to us or our affiliates. |
| Late Reporting Fee | Our |
Source: Item 6 — OTHER FEES (FDD pages 31–45)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a franchisee will incur a late reporting fee if they fail to submit timely, complete, and accurate reports, financial statements, tax returns, and statements of initial investment costs when they are due. The late fee is Cinnabon's then-current fee, which is currently $50 per week. This fee is due on invoice.
It is important to note that Cinnabon may change this fee in any year, but the change cannot exceed the Allowed Adjustment as defined in Note 4 of the FDD. This means that the fee could increase over time, but there is a limit to how much it can increase in a given year.
For a prospective Cinnabon franchisee, this means that it is crucial to ensure all required reports and documents are submitted on time and are accurate. Failing to do so will result in a weekly fee of $50, which can add up quickly. Franchisees should establish systems and processes to ensure compliance with Cinnabon's reporting requirements to avoid these fees.