Cinnabon Franchise Costs, Fees & FDD

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Year Business Began: 1985

Franchising Since: 1986

Headquarters: Atlanta, Georgia

Estimated Number of Units: 1,985

Franchise Description: Cinnabon Franchisor SPV LLC, the franchisor, is a wholly-owned subsidiary of GoTo Foods LLC (formerly known as Focus Brands LLC). Cinnabon bakeries are retail stores that sell fresh baked cinnamon rolls and related products, which may include alcoholic beverages. There are six types of franchises offered:

1. Full Bakery: A bakery where the franchisee produces and sells a full range of Cinnabon products. Full bakeries typically are in-line or kiosk locations.
2. Express Bakery: A bakery where the franchisee produces and sells a limited selection of Cinnabon products. Express bakeries are typically located in the space of another restaurant, food service facility, or business approved by the franchisor.
3. Concession Bakery: A bakery location at a fair, show, market, or other special event in a concession trailer or food truck where franchisees produce and sell a limited range of Cinnabon products.
4. Auntie Anne’s Co-Branded Bakery: A full bakery where franchisees produce and sell a range of Cinnabon products in conjunction with those products authorized to be sold under the Auntie Anne’s franchise system.
5. Carvel Co-Branded Bakery: A full bakery where you produce and sell a range of Cinnabon products in conjunction with those products authorized to be sold under the Carvel franchise system.
6. Swirl Bakery: A Carvel Co-Branded Bakery that operates under the “Cinnabon Swirl” mark and trade dress and offers a unique menu that offers traditional Carvel and Cinnabon products in addition to hybrid menu items that combine products and ingredients from both brands.

Training Overview: Required trainees must attend and successfully complete to the franchisor’s satisfaction the management training program prior to the opening of the bakery. All individuals attending the management training program must be at least 18 years old and must have management experience as a restaurant owner and/or operator. All or certain portions of the management training program may, in the franchisor’s discretion, be conducted online or in person at (i) the franchisor’s corporate headquarters in Atlanta, Georgia, (ii) a bakery that the franchisor designates that has been certified as an authorized training facility, and/or (iii) other locations authorized by the franchisor. Currently, the classroom training is conducted through online modules and the on-the-job training is conducted at a certified training location. The franchisor also recommends that the primary contact or at least one of the managers attend the opening of another franchisee’s bakery before a franchisee opens their own bakery. For the franchisee’s first two bakeries (including bakeries owned by affiliates), the initial franchise fee includes the cost of the franchisor providing one or more representatives to provide onsite opening training and assistance (approximately seven days after the certificate of occupancy and health permit are obtained) to facilitate the opening of such bakeries. The franchisor may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or training sessions on any matters related to the system.

Territory Granted: The Franchise Agreement licenses franchisees to manufacture and sell approved products at retail only from the specific bakery location that the franchisor accepted. The franchisor does not grant franchisees any exclusive territory or other territorial rights under these agreements other than the right to sell approved products at retail from the bakery. However, if franchisees operate a co-branded bakery in a streetside location, while they will not receive an exclusive territory, they will receive a territory with limited protected rights.

Obligations and Restrictions: Franchisees are required to devote their best efforts to the proper and effective operation of the bakery. Franchisees (if they are an individual) and their owners (if they are an entity) are not required to participate in the actual operation of the bakery but may serve as the primary contact and/or a manager. However, the franchisor does not recommend an investment in a bakery for investors interested in an absentee management business. Franchisees may offer in the bakery to customers only the approved products that the franchisor has approved in writing. Franchisees must produce and sell all approved products it specifies, including all menu items and other products and services that the franchisor requires franchisees to sell, as stated in the manuals or otherwise, which are all part of the system.

Term of Agreement and Renewal: For full and express bakeries, the length of the initial franchise term is 20 years with an option to renew for an additional 20 years, if renewal requirements are met. For concession bakeries, the length of the initial franchise term is five years with no renewal option.

Financial Assistance: The franchisor does not offer financing for trade fixtures, opening inventory, or any other purpose. The franchisor may refer franchisees to leasing or financing companies not affiliated with it. Currently, the franchisor will not guarantee the franchisee’s note, lease, or obligation, for any lender, or any other person or entity.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$30,500	$30,500
Construction and Build Out Costs	$82,700	$307,000
Permitting	$1,600	$5,000
Equipment Package	$52,000	$86,200
Millwork	$20,000	$40,000
Menu Board, Graphics and Interior Signage	$2,000	$12,000
Exterior Signage	$3,700	$26,400
Computer System	$10,500	$32,000
Smallwares	$2,800	$8,000
Architect/Engineer	$2,500	$16,000
Rent	$4,000	$10,000
Grand Opening Marketing	$3,000	$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	$3,000
Travel and Living Expenses During Training	$3,600	$5,700
On-Site Training Fee	$0	$6,100
Opening Inventory	$5,000	$8,000
Additional Funds (3 months)	$15,000	$33,000
ESTIMATED TOTAL*	$246,950	$675,000

*The estimated initial investment range covers a full bakery in a traditional location. Please see FDD for details on other franchise types.

Other Fees

Type of Fee	Amount
Royalty	Generally, 6.0% of net sales. See FDD for exceptions.
Advertising Contribution	2.5% or 3% of net sales. Not charged for express bakeries in a Schlotzsky’s.
Advertising Cooperative Contribution	An amount set by the franchisee’s advertising cooperative.
Local Marketing Obligation	Each calendar quarter, franchisees must spend not less than 1% of net sales on local market advertising.
Promotions and Advertising Materials	Up to 110% of the franchisor’s or its affiliates’ actual costs and expenses related to the goods franchisees purchase.
Insufficient Funds Fee	Up to 110% of the franchisor’s or its affiliates’ out-of-pocket costs and an administrative fee.
Interest	The lesser of 1.5% per month or maximum legal interest rate.
Late Reporting Fee	Currently, $50 per week.
Taxes and Other Payments	The franchisor’s costs and expenses.
Subsequent Management Trainee Training Fee	Currently, $250 per trainee per day.
On-Site Training and Assistance	A reasonable fee. Currently, $500 per trainer per day, plus their travel and living expenses.
Additional Support/Consulting Fee	A reasonable fee. Currently, $500 per representative per day, plus their travel and living expenses.
Conference/Program Fee	A reasonable fee, which will vary by program.
Training Cancellation Fee	The fees for the cancelled program and the franchisor’s out of pocket costs.
Learning Management System License Fee	The then-current fee.
Sublease Administration Fee	The then-current fee.
Lease Renewal Fee/Extension Assistance Fee	The then-current fee.
Lease Documentation Late Fee	$500 per month (or partial month) until delivered.
SRU Initial Setup and Rental Fees	If the franchisor grants franchisees the right to participate in the SRU Program and they lease the SRU, franchisees will incur these initial setup and ongoing fees. The maximum SRU monthly rental fee will vary based on the type of SRU.
SRU Training Fees	$750 as incurred.
SRU Lease Termination Fees	Franchisor’s actual costs and expenses.
Remote Location Baking License Fee	$3,000 per year.
Relocation Fee	10% of the then-current initial franchise fee.
Relocation Extension Fee	$1,500 per year that the term is extended.
Refresh/ Remodel Site Survey and Design Solution Fee	The then-current fee. Currently, $1,200 to $6,000 depending on the scope of the required changes.
Transfer Fee	50% of the then-current initial franchise fee if it is a control transfer; if it is a transfer to a related party or that is a not a control transfer, 10% of the then-current initial franchise fee.
Renewal Fee	20% of the then-current initial franchise fee for the type of bakery the franchisee will operate.
Computer Systems Fee	A reasonable fee, which will vary based on the services the franchisor provided.
POS System License and Lease Fees	Currently, $159 to $397 per month if franchisees purchase the POS System under the CapEx Program and $216 to $442 per month if they lease the POS System under the HaaS Program.
POS System Support Fee	Currently, between $70 and $250 per month.
POS System Administration Fee	The then-current fee, which is currently estimated to be between $1,500 to $2,000.
Non-GoTo Foods Portfolio POS Menu Setup	A reasonable fee, currently estimated to be $500 per day.
Back Office and Polling Software Fee	Currently not charged.
Credit Card Fees	Transaction fees are 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.
Information Security and Compliance Fees	Currently, not charged by the franchisor or its affiliates.
Gift Card and Loyalty Program Fees	Amount of administrative fees.
Loyalty App Fee	Currently, $51 per month.
Online Ordering Fee	Currently, $54 per month, plus a per transaction fee (estimated to be less than 0.04% per transaction) and additional charges based on services subscribed to.
Ordering Support Fee	The then-current fee, which will vary based on the services provided.
Technology Fee	Currently not collected.
Purchasing Program Fee	Reasonable membership fees assessed by the purchasing program.
Supply Chain Fee	Currently $0.31 to $0.58 per case purchased through certain appointed distributors.
Master Insurance Policy Fee	Currently not charged; the franchisor does not have an estimate at this time.
Insurance	Amount of unpaid premiums and up to 110% of the franchisor’s actual costs and expenses.
Guest Relations Fee	Currently, $30 for each guest complaint or other contact request that franchisees do not timely respond to or for each excessive guest complaint.
Non-Compliance Fee	Currently, $25 to $500 for a single default, but may vary based on the severity of violations, number of violations, and repetition of violations.
Failure to Comply with Standards or Law Fee	Up to a $5,000 fee plus the franchisor’s reasonable expenses connected with any inspection, examination, or analysis of products or the franchisee’s bakery.
Development Deadline Extension Fee	$2,500 per missed deadline.
Repeated Inspection Fee	$500 non-compliance fee, plus any costs the franchisor is charged by third-party inspectors or otherwise incurs.
Audit	Cost of audit.
Reimbursement of Services After Default	All costs and expenses that the franchisor reasonably incurs.
Liquidated Damages (Full or Concession Bakery)	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.
Liquidated Damages (Express Bakery)	The average amount the franchisee paid per month to purchase proprietary goods during the past 36 months times the lesser of remainder of the term of the Franchise Agreement or 36 months.
Appraiser's Fee	50% of appraiser's fee.
Indemnification of Cinnabon	The franchisor’s cost.
Attorneys' Fees	The franchisor’s cost.
Reinstatement Fee	10% of the amount of the then-current initial franchise fee, plus royalty fees that would have been payable in period between termination and reinstatement.
De-identification Fee	The franchisor’s actual costs, plus interest and an administrative fee equal to 15% of the franchisor’s actual costs.

The above information has been compiled from the FDD of Cinnabon. Year of FDD: 2025.
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