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Cinnabon Franchise Cost & Fees

Date of Incorporation: 1985

Franchising Since: 1986

Headquarters: Atlanta, Georgia


Business Description: Cinnabon Inc., the franchisor, is a wholly-owned subsidiary of Cinnabon International, Inc., which is a wholly-owned subsidiary of Focus Brands Inc. In addition to franchising, the franchisor also sells products to wholesale accounts that offer Cinnabon products at retail, such as supermarkets, convenience stores, club stores and other similar retail outlets and (ii) unaffiliated branded restaurants and retail stores that it permits to sell one or more Cinnabon branded products.


Franchise Offer: Franchisees operate a Cinnabon retail bakery. Cinnabon bakeries are retail stores that sell fresh baked cinnamon rolls and related products. There are two types of franchises offered:

  1. Cinnabon Full Bakery is where the franchisee will produce and sell a full range of Cinnabon products.
  2. Cinnabon Express Bakery is where the franchisee will produce and sell selected Cinnabon products.


Financial Assistance: Cinnabon Inc. may refer franchisees to leasing or financing companies not affiliated with Cinnabon. Cinnabon Inc. and affiliates receive no fees or other financial benefits from any lender for the franchisee’s financing. Currently, Cinnabon will not guarantee the franchisee’s note, lease, or obligation, for any lender, or any other person or entity. Cinnabon does participate in the SBA's Franchise Registry Program, and will modify the Franchise Agreement to permit the franchisee to give the SBA or an SBA-approved lender a security interest in the Bakery.


Training and Assistance: If Cinnabon determines that the franchisee does not have sufficient restaurant experience, he/she may be required to complete an internship in an existing Cinnabon Bakery in addition to the training program. If the franchisee is an individual and will act as the full-time manager of the Bakery, he or she and any other persons the franchisor designates must attend and successfully complete the basic Cinnabon Bakery Manager Training Program (except Express Bakeries are required to send only one individual that will act as the Certified Bakery Manager). The Full Bakery training program (operations based training known as WOW University and Focus Brands University) lasts for 10 to 12 days in the corporate training facility in Atlanta, Georgia or a regionally approved live training Bakery. Cinnabon also may periodically make available to the franchisee or employees, additional training programs that Cinnabon, in its discretion, choose to conduct. Cinnabon may also periodically conduct a conference, convention, program, or training session.


Territory: The Franchise Agreement does not give the franchisee any territorial rights or protections in any geographic area. The Franchise Agreement licenses the franchisee to manufacture and sell Cinnabon products at retail only from a specific Full Bakery or Cinnabon Express Bakery location that Cinnabon Inc. accepts.


Term of Agreement and Renewal: The term of the franchise agreement is 20 years with an option to renew for an additional 20 years if renewal requirements are met. For an Express addendum, the length of the franchise term is five years with an option to renew for an additional five years if renewal requirements are met.


Obligations and Restrictions: The franchisee must personally supervise the operation of the Bakery, unless the franchisee otherwise permits in writing. The franchisee must offer and sell all services, products, and programs that the franchisor requires the franchisee to sell and that are part of the Cinnabon System, or that the franchisor incorporates into the Cinnabon System in the future. The franchisor may add to, delete from, or modify the services, products, and programs that the franchisee can and must offer.


Estimated Number of Units: 1,075


Investment Tables

Initial Investment

Full Bakery

Name of Fee Low High
Initial Franchise Fee $30,000 $30,000
Real Estate Varies Varies
Leasehold Improvements $31,532 $225,000
Equipment, Fixtures, Furniture, Menu Boards, Graphics $40,900 $46,000
Smallwares $2,899 $4,200
Storefront Signage $5,000 $7,200
Point-of-Sale $3,100 $46,200
Drink Dispenser $5,100 $5,100
Architect and Business Licenses $7,448 $14,500
Initial Training $3,500 $5,000
Opening Supplies $3,500 $6,000
Insurance $1,000 $3,000
Utility Deposits $350 $500
Additional Funds (3 months) $10,000 $10,000
Grand Opening Advertising $3,000 $3,000
Estimated Total (excluding Real Estate) $143,333 $365,700

 

Full Bakery with a Carvel Express Shoppe

Name of Fee Low High
Initial Franchise Fee $30,000 $37,500
Real Estate Varies Varies
Leasehold Improvements $90,000 $225,000
Architect $5,000 $8,500
Permits & Licenses $2,000 $6,000
Signs and Graphics $4,000 $5,000
Equipment, Millwork, Furniture, Fixtures and Point-of-Sale System $75,000 $80,000
Molds and Smallwares Package $3,000 $5,000
Opening Inventory $0 $4,000
Training Expenses $0 $4,000
Security Deposit $0 $0
Business Insurance $0 $0
Additional Funds (3 months) $0 $37,500
Grand Opening Advertising $1,000 $15,000
Estimated Total (excluding Real Estate) $210,000 $427,500

 

Express Bakery

Name of Fee Low High
Initial Franchise Fee $7,500 $7,500
Real Estate Varies Varies
Leasehold Improvements $7,400 $15,350
Equipment, Fixtures, Furniture, Menu Boards, Graphics $14,600 $40,000
Smallwares $626 $1,370
Storefront Signage $3,000 $7,400
Point-of-Sale $0 $6,200
Initial Training $0 $3,000
Opening Supplies $2,000 $5,000
Insurance $0 $2,000
Utility Deposits $0 $350
Additional Funds (3 months) $0 $3,000
Grand Opening Advertising $1,000 $3,000
Estimated Total (excluding Real Estate) $36,126 $94,170

 

Express Bakery in a New Schlotzsky’s Restaurant

Name of Fee Low High
Initial Franchise Fee $7,500 $7,500
Real Estate Varies Varies
Leasehold Improvements $3,000 $3,000
Equipment, Fixtures, Furniture, Menu Boards, Graphics $10,948 $10,948
Smallwares $516 $516
Storefront Signage $2,000 $6,000
Point-of-Sale $0 $0
Initial Training $0 $0
Opening Supplies $600 $2,500
Insurance $0 $20
Utility Deposits $0 $0
Additional Funds (3 months) $0 $1,500
Grand Opening Advertising $0 $0
Estimated Total (excluding Real Estate) $24,564 $31,984

 

Other Fees

Type of Fee Amount
Royalty For Full Bakeries, 6.0% of Net Sales; For Express Bakeries, the then current price per case of freezer to oven ("FTO") rolls or other approved proprietary Cinnabon products the franchisee purchases from Cinnabon or the designated supplier.
Advertising Contribution For Full Bakeries, currently, 1.5% of Net Sales but we may adjust this amount up to 3% of Net Sales (this fee does not apply to Express Bakeries)
Promotions Costs to purchase, lease and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items and gift cards. Cinnabon may charge franchisees its costs plus a reasonable administrative fee.
Polling Service Recurring Fee Not to exceed $100 per month.
Credit Card Fees Equipment costs and set up fees estimated to be up to $700 per terminal. Transaction fees estimated to be from 2.5% to 5.0% of transaction amounts. Other fees may apply depending on the vendor used for credit card processing.

Gift Card and Loyalty Card Fees

Equipment costs and set up fees estimated to be up to $500 if not able to be tied into a credit card terminal purchased from Credit Card provider or tied into the POS System.
EFT NSF Fee Our out-of-pocket costs and an administrative fee.
Replacement Manager Initial Training Fee Up to $500 per trainee.
On-Site Training and Assistance $50 per hour plus trainers' expenses (this fee does not apply to Express Bakeries)
Consulting Fee $500 per day (this fee does not apply to Express Bakeries)
Training Cancellation Fee Cinnabon's out of pocket costs.
Adulteration, Dilution or Failure of Sanitation Inspection Fee Cinnabon’s expenses, including attorneys' fees, and inspection fees of up to $5,000 per visit.
Interest 1% per month or maximum legal interest rate.
Taxes Cinnabon’s cost.
Advances Cinnabon’s cost.
Relocation Extension Fee Another initial fee of $1,000 per year of extension on term (this fee does not apply to Express Bakeries)
SRU Fees $500 initial fee

$750 training fee

Monthly rental fee of 8% of Net Sales up to the maximum monthly rent for the unit (currently $1,571.15 per five week month and $2,423.10 for a baking SRU)

$1,000 refundable security deposit

Actual shipping costs to and from the Bakery estimated to be between $1,500 and $5,000

Actual cost for optional modular add-ons, if any.

Transfer Fee 50% of the then-current initial franchise fee for the type of Bakery the franchisee will operate; if it is a transfer to a related party, 10% of the then-current Initial Franchise Fee for the type of Bakery the franchisee will operate;

$2,500 for transfers under the Territory Agreement.

Renewal Fee 10% of the then-current initial franchise fee for the type of Bakery the franchisee will operate.
Liquidated Damages The average monthly amount of Royalty that the franchisee owed Cinnabon during the past 36 months times the lesser of remainder of the term of the Franchise Agreement or 36 months. If less than 36 months have passed since opening and termination, the amount will be the average monthly Royalty during the time between opening and termination, times the lesser of remainder of the term of the Franchise Agreement or 36 months.
Appraiser's Fee 50% of appraiser's fee (this fee does not apply to Express Bakeries)
Indemnification of Cinnabon Cinnabon’s cost.
Attorneys' Fees Cinnabon cost.
Supplier/Product Evaluation Fee Cost of supplier/product evaluation process.
Reinstatement Fee 10% of the amount of the then-current initial franchise fee for the type of Bakery the franchisee will operate.
Audit Cost of audit.
Late Fee for reports, financial statements or tax returns $100 per day.

The above information has been compiled from the FDD of Cinnabon.

Year of FDD: 2013

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