Under what circumstances will Cinnabon NOT require a franchisee to participate in an Advertising Cooperative?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
If we collect the entire Local Marketing Obligation, we will not require you to participate in an Advertising Cooperative.
If we exercise our right to collect your entire Local Marketing Obligation (and not just a portion of it), you will not be required to (x) spend a minimum amount on local advertising (other than your Grand Opening Obligation), (y) provide a local marketing plan, or (z) participate in, or contribute to, your Advertising Cooperative. We are not obligated to ensure that the Local Marketing Obligation monies that we spend are proportionate or equivalent to your contributions or that the Franchised Business will benefit directly or pro rata or in any amount from the placement of advertising.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are generally required to participate in Advertising Cooperatives if Cinnabon mandates it. However, there is one specific circumstance under which Cinnabon will waive this requirement.
If Cinnabon exercises its right to collect the entire Local Marketing Obligation from a franchisee, the franchisee will not be required to participate in or contribute to an Advertising Cooperative. The Local Marketing Obligation is currently equal to 1% of the Net Sales of the Franchised Business per calendar quarter.
This means that if Cinnabon decides to take direct control of the franchisee's local marketing funds, the franchisee is then relieved of the responsibility to join and contribute to any Advertising Cooperative. However, Cinnabon is not obligated to ensure that the Local Marketing Obligation monies that they spend are proportionate or equivalent to your contributions or that the Franchised Business will benefit directly or pro rata or in any amount from the placement of advertising.