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cinnabon franchise

Cinnabon Franchise Costs $26K – $1M (+ 2024 Profits)

Here’s what you need to know if you’re interested in opening a Cinnabon franchise.

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

974

INITIAL INVESTMENT

$26,000 – $1,032,000 

ROYALTY FEE

6% to 8%
revenue

REVENUE PER YEAR

$502,000

Cinnabon, known worldwide for its irresistibly sweet cinnamon rolls, was founded on December 4, 1985, in Seattle, Washington. Since then, it has grown into a leading bakery and coffee shop franchise globally. The company began franchising a year after its establishment, in 1986, and has expanded its presence to over 55 countries, showcasing its significant international reach.

Headquartered in Atlanta, Georgia, Cinnabon operates under the parent company Focus Brands, and its brand recognition extends far beyond its original bakery concept. Cinnabon franchises offer a range of products including their classic rolls, mini rolls, and an assortment of flavored beverages.

A unique aspect of Cinnabon’s product offerings is the emphasis on the sensory experience—customers are often greeted by the enticing aroma of cinnamon and freshly baked goods as they approach a Cinnabon bakery, enhancing the brand’s appeal.

Number of locations

TOTAL UNITS
974
FRANCHISED UNITS
952

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Cinnabon

Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$30,500
Construction and Build Out Costs$99,800 – $297,000
Permitting$2,400 – $7,900
Equipment Package$45,000 – $108,000
Millwork$20,000 – $40,000
Menu Board, Graphics and Interior Signage$2,000 – $12,000
Exterior Signage$2,300 – $15,000
Computer System$7,400 – $27,400
Smallwares$3,500 – $7,000
Architect/Engineer$4,200 – $18,800
Rent$4,000 – $10,000
Grand Opening Marketing$2,500 – $7,500
Legal and Accounting Fees$5,000 – $10,000
Insurance$1,250 – $6,800
Misc. Opening Costs/Office Supplies$1,800 – $6,800
Security Deposits$0 – $15,000
Management Training Program Fee$0 – $2,500
Travel and Living Expenses during Training$3,100 – $5,100
On-Site Training Fee$0 – $6,100
Opening Inventory$5,000 – $8,000
Additional Funds – 3 Months$15,000 – $33,000
Total Initial Investment*$254,750 – $674,400
* for a Full Bakery in a Traditional Location

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The Initial Franchise Fee is $30,500.

Royalty Fee

The Royalty Fee is 6% of the Net Sales of the Franchised Business, payable weekly.

Marketing/Advertising Fee

The Advertising Contribution is determined by Cinnabon, which combined with the Local Marketing Obligation, shall not exceed 5% of the Net Sales of the Franchised Business, payable weekly.

Lease or Rent Fee

Lease-related fees include a Lease Renewal/Extension Review Fee ranging from $500 for a lease term of two years or less to $2,000 for a term of five years or more, as incurred.

Transfer Fees

The Transfer Fee is 50% of the then-current Initial Franchise Fee for Control Transfers; for transfers to a related party or that is not a Control Transfer, it is 10% of the then-current Initial Franchise Fee.

Renewal Fees

The Renewal Fee is 20% of the then-current Initial Franchise Fee for the type of Bakery you will operate, payable before the renewal agreement is signed.

revenue

Revenue & Profits

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Cinnabon

Franchise pros and cons

 The Pros:

  • Franchise training: Cinnabon has in place a comprehensive training support team and digital resources that help franchisees, their designated managers, and employees learn all they need to operate and manage a successful and profitable bakery.
  • Aggressive marketing: The brand offers franchisees a dedicated marketing and public relations team to help them with the best local media and marketing plans in their locations. With an innovative and targeted marketing team, franchisees are guaranteed success.
  • Purchasing power: The franchisees can leverage the brand’s international supply channel and enjoy economies of scale by acquiring quality, regulated inventories at reasonable commercial prices.
  • Universal brand recognition: The brand has bakeries in more than 50 countries, and it’s still growing. Franchisees can join the most well-known cinnamon roll brand and have the opportunity to grow in markets where the brand is present. 
  • Real estate and construction: Cinnabon offers franchisees real estate experts to help in the construction. They assist in site selection, bakery construction, design, and branding. They also provide a dedicated leasing team to help franchisees identify real estate opportunities and negotiate the lease.
  • Flexible franchise models: Cinnabon has different flexible franchise models that franchisees can choose from. These include full bakeries, express bakeries, concession bakeries, Auntie Anne’s branded bakeries, and Carvel co-branded bakeries. Therefore, franchisees can start a bakery that fits their budget.
  • Operations and field support: The brand provides franchisees with a passionate and dedicated support team. Franchisees get access to initial management training, on-site bakery visits, security and safety procedures, review, and performance analyses by corporate management teams.
  • Product development: The Cinnabon brand enjoys world-class quality and a varied menu. It keeps improving on this and expanding the menu to accommodate different demands and new customer tastes through testing and experimenting with new flavors.

The Cons:

  • No exclusive territory granted: The brand does not offer franchisees exclusive territory protection. Therefore, franchisees may face competition from other Cinnabon bakeries.
  • No financing: The franchisor does not offer direct or indirect financing to franchisees. It also does not guarantee any lease, obligation, or note for any lenders. Franchisees must seek third-party financing or SBA loans to fund their trade fixtures, inventory, or other needs.

Prior restaurant chain experience: The brand requires franchisees to have past business experience as restaurant owners or operators.

How to open a cinnabon franchise

1: Research Franchise Requirements

  • Understand the Brand: Familiarize yourself with Cinnabon’s business model, brand, and products.
  • Franchise Criteria: Check the financial and experience criteria needed to open a franchise. Cinnabon typically requires a certain net worth and liquid capital.
  • Market Analysis: Analyze your local market to determine if there’s demand for Cinnabon products.

2: Submit an Application

  • Initial Application: Fill out the franchise application form provided by Cinnabon on their official website.
  • Provide Documentation: Submit any required documents, such as proof of financial standing, business experience, and personal identification.

3: Attend Discovery Day

  • Discovery Day: Participate in a Discovery Day, where potential franchisees meet the franchisor, learn more about the company, and express their commitment to the brand’s values.
  • Interview: During or after Discovery Day, you may have an interview with Cinnabon’s franchise team to discuss your application in detail.

4: Review Franchise Agreement

  • Receive Franchise Disclosure Document (FDD): Review the FDD that outlines all the details about the franchise, including fees, obligations, and legalities.
  • Legal Review: It’s advisable to have a lawyer review the franchise agreement to understand the terms and conditions thoroughly.

5: Secure Financing

  • Funding Options: Determine how you will finance the franchise. Options may include personal savings, bank loans, or investment from partners.
  • Approval: Get financial approval if needed, which might include securing a loan or other forms of financing.

6: Find a Location

  • Site Approval: With the help of Cinnabon’s real estate team, identify and secure an appropriate location that meets brand standards and market needs.
  • Lease Negotiation: Negotiate the lease terms with the property owner under the guidance of Cinnabon.

7: Training and Development

  • Franchisee Training: Complete the required training program provided by Cinnabon, which includes operational, administrative, and sales training.
  • Staff Hiring: Hire and train staff according to Cinnabon’s guidelines to ensure quality service and product consistency.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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