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Bakery 1,030 Units

Cinnabon Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$246,950 – $675,000

Franchise Fee

$30,500

Royalty Rate

6.0%

Initial Investment Range

Low: $246,950 High: $675,000

The total initial investment to open a Cinnabon franchise ranges from $246,950 to $675,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $30,500.

Midpoint estimate: $460,975

Franchise Fee

$30,500

One-time initial fee

The Cinnabon franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Cinnabon brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

2.5%

of gross revenue

Total Ongoing Fee Burden: 8.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee 6.0 PCT For Full Bakeries, 6% of Net Sales payable weekly. For Auntie Anne's Co-Branded Bakeries in Other Locations: 6% of Net Sales attributed to Cinnabon; 7% attributed to Auntie Anne's (may increase to 8%). For Express Bakeries in a Schlotzsky's: then-current product price per case, due on receipt of invoice.
Advertising Contribution 2.5 PCT Bakeries in Other Locations (except Auntie Anne's Co-Branded): currently 2.5% of Net Sales. Auntie Anne's Co-Branded: 2.5% Cinnabon portion, 2% Auntie Anne's portion. Streetside Locations: 3%. Swirl Bakeries: 3%. Express Bakeries in Schlotzsky's: Not charged. May increase but combined with Local Marketing Obligation cannot exceed 5% of Net Sales.
Advertising Cooperative Contribution N/A VARIABLE Amount set by Advertising Cooperative with voting rights for all members.
Local Marketing Obligation 1.0 PCT Currently 1% of Net Sales per calendar quarter on local market advertising. May change with 60 days' notice. Combined with Advertising Contribution cannot exceed 5% of Net Sales.
Promotions and Advertising Materials N/A VARIABLE For promotional campaigns including counter cards, posters, banners, signs, loyalty program rewards, gift cards, etc.
Insufficient Funds Fee N/A VARIABLE Charged when EFT draft has insufficient funds, includes bank return charges, plus interest on amount due.
Interest 1.5 PCT Lesser of 1.5% per month or maximum legal interest rate on amounts past due.
Late Reporting Fee 50.0 FIXED Currently $50 per week for failure to submit timely, complete and accurate reports. May change by no more than Allowed Adjustment.
Taxes and Other Payments N/A VARIABLE Within 10 days after demand. Includes sales taxes, corporate taxes, franchise taxes, marketplace facilitator taxes, and other amounts paid on franchisee's behalf.
Subsequent Trainee Management Training Fee 250.0 FIXED Currently $250 per trainee per day for new Manager, Primary Contact, Director of Operations after Bakery opens. May change by Allowed Adjustment.
On-Site Training and Assistance Fee 500.0 FIXED Currently $500 per trainer per day plus travel and living expenses for additional on-site training. May change by Allowed Adjustment.
Additional Support/Consulting Fee 500.0 FIXED Currently $500 per representative per day plus travel and living expenses for consultation services beyond standard support. May change by Allowed Adjustment.
Conference/Program Fee N/A VARIABLE Currently ranges from $0 to $2,500 per attendee for conferences, conventions, programs or training sessions. May change by Allowed Adjustment.
Training Cancellation Fee N/A VARIABLE Charged if fail to cancel scheduled training at least 14 days prior or not prepared to complete training. Includes training fees and travel expenses.
Learning Management System License Fee 170.0 FIXED Currently $170 per year for required electronic learning management system. May change by Allowed Adjustment.
Sublease Administration Fee 200.0 FIXED Currently $200 per month if sublease Bakery from franchisor, for administrative expenses. May change by Allowed Adjustment.
Lease Renewal/Extension Review Fee N/A VARIABLE Currently ranges from $500 for lease term of two years or less to $2,000 for five years or more. For lease review upon renewal/extension. May change by Allowed Adjustment.
Lease Documentation Late Fee 500.0 FIXED $500 per month (or partial month) if fail to provide signed copy of lease within 15 days after execution, until delivered.
SRU Initial Setup and Rental Fees 8.0 PCT Setup: $500 fee, $1,000 security deposit, $1,500-$5,000 shipping. Ongoing: currently 8% of Net Sales or flat amount, up to $1,600-$2,750 max. May increase by Allowed Adjustment.
SRU Training Fees 750.0 FIXED $750 for SRU Program installation and up to two days on-site training.
SRU Lease Termination Fees N/A VARIABLE Return cost ($1,500-$5,000), repair/replacement costs (less security deposit), customization removal costs, and if terminated in first year, maximum monthly rental for remaining months to first anniversary.
Remote Location Baking License Fee 3000.0 FIXED $3,000 per year for venues like stadiums where baking at Bakery and selling at alternate location.
Relocation Fee 10.0 PCT 10% of then-current Initial Franchise Fee before relocation to accepted new site.
Relocation Extension Fee 1500.0 FIXED $1,500 per year that term is extended if relocate and franchisor extends Franchise Agreement term to match new lease.
Refresh/Remodel Site Survey and Design Solution Fee N/A VARIABLE Currently $1,200-$6,000 depending on scope. For refresh every 5 years and remodel every 10 years. May change by Allowed Adjustment.
Transfer Fee 50.0 PCT 50% of then-current Initial Franchise Fee for Control Transfer; 10% for transfer to related party or non-Control Transfer. At transfer closing.
Renewal Fee 20.0 PCT 20% of then-current Initial Franchise Fee for type of Bakery, before signing renewal Agreement.
Computer Systems Fee N/A VARIABLE Reasonable systems fee for modifications, enhancements, maintenance and support services for Computer System. Not to exceed 110% of actual costs.
POS System License and Lease Fees N/A VARIABLE Currently $159-$397 per month for CapEx Program (software license), $216-$442 per month for HaaS Program (software license and hardware lease). Actual costs plus 0.5% administrative fee.
POS System Support Fee N/A VARIABLE Currently $70-$250 per month for software and hardware support including helpdesk, troubleshooting, menu management. May change by Allowed Adjustment.
POS System Administration Fee N/A VARIABLE Currently $1,500-$2,000 for project management services for POS System onboarding/reconfiguration after transfer or before opening. May change by Allowed Adjustment.
Non-GoTo Foods Portfolio POS Menu Setup 500.0 FIXED Currently $500 per day if co-branded with non-GoTo Foods brand to add/modify menu in POS System. May change by Allowed Adjustment.
Back Office and Polling Software Fee N/A VARIABLE Currently not charged. Estimated $100-$200 per month if required in future. May change by Allowed Adjustment.
Credit Card Fees N/A VARIABLE Transaction fees estimated 2.5%-5% of transaction amounts. Other fees may apply. Franchisor fees not to exceed 110% of actual costs.
Information Security and Compliance Fees N/A VARIABLE Currently not charged by franchisor. May charge up to 110% of actual costs for PCI-DSS compliance services, data breach insurance, etc.
Gift Card and Loyalty Program Fees N/A VARIABLE Currently gift card distributor retains 7.75%-12% of value. Gift card processor charges $4.50 per Bakery per month. Franchisor fees not to exceed 110% of actual costs.
Loyalty App Fee 51.0 FIXED Currently $51 per month for required loyalty program app. Franchisor fees not to exceed 110% of actual costs.
Online Ordering Fee 54.0 FIXED Currently $54 per month plus 0.04% per transaction and additional charges based on services. Franchisor fees not to exceed 110% of actual costs.
Ordering Support Fee 3.0 PCT Currently 3% of pre-tax transaction amount for online and catering ordering platforms, call centers, delivery management. Franchisor fees not to exceed 110% of actual costs.
Technology Fee N/A VARIABLE Currently not collected. May require in future for technology-related products, services, systems. Not to exceed 110% of actual costs. May replace/supplement other tech fees.
Purchasing Program Fee N/A VARIABLE Currently no Purchasing Programs requiring membership fees. If established, fees not to exceed 110% of actual costs.
Supply Chain Fee N/A VARIABLE Currently $0.31-$0.58 per case purchased through certain Appointed Distributors to offset supply chain expenses. May change by Allowed Adjustment.
Master Insurance Policy Fee N/A VARIABLE Currently not charged. May require payment of proportionate share of master insurance policy in future.
Insurance N/A VARIABLE Payable on demand only if fail to maintain required insurance coverage and franchisor obtains coverage.
Guest Relations Fee 30.0 FIXED Currently $30 for each guest complaint not responded to within 72 hours or for 4th and subsequent complaints in a month. May change by Allowed Adjustment.
Non-compliance Fee N/A VARIABLE Currently $25-$500 for single violation based on severity, number, and repetition. May be charged repeatedly (as frequently as daily). May increase by Allowed Adjustment.
Failure to Comply with Standards or Law Fee N/A VARIABLE Currently up to $5,000 fee plus reasonable expenses if inspection shows product adulteration, non-compliance with laws, repeated violations, or non-cooperation. May increase by Allowed Adjustment.
Development Deadline Extension Fee 2500.0 FIXED $2,500 per missed deadline for Site Approval, Construction Start, or Opening Deadline, or if extension granted.
Repeated Inspection Fee 500.0 FIXED $500 Non-compliance Fee plus third-party inspector costs and travel expenses if inspection due to repeated/continuing failure to comply.
Audit N/A VARIABLE If audit finds Net Sales understated by 2% or more, must reimburse all reasonable audit expenses including accounting and attorneys' fees. Estimated $1,000-$4,000.
Reimbursement of Services After Default N/A VARIABLE Payable on invoice if franchisor performs franchisee's obligations after default.
Liquidated Damages (Full Bakery or Concession Bakery) N/A VARIABLE Within 30 days of termination. Average monthly Royalty for past 36 months (or since opening if less) times lesser of remaining term or 36 months. Only if termination after opening and not insolvent.
Liquidated Damages (Express Bakery) N/A VARIABLE Within 30 days of termination. Average monthly Proprietary Goods purchases for past 36 months (or since opening if less) times lesser of remaining term or 36 months. Only if termination after opening and not insolvent.
Appraiser's Fee 50.0 PCT 50% of appraiser's fee payable on invoice if franchisor elects to purchase assets on termination/expiration and parties cannot agree on purchase price.
Indemnification of us N/A VARIABLE Franchisee indemnifies franchisor from certain losses and expenses under Franchise Agreement. Payable on invoice.
Attorneys' Fees N/A VARIABLE Must pay franchisor's attorneys' fees related to franchisee/Owners/Bakery (except defense against franchisee's enforcement claims or claims franchisee substantially prevails on), if franchisor wins litigation, or expenses from default/termination.

What You Get

Category

Bakery

System Size

1,030 units

Franchise Score

80

out of 100

Cinnabon is a bakery franchise famous for its signature cinnamon rolls and sweet baked goods. The brand operates standalone locations and co-branded stores, known for indulgent, freshly-baked treats.

Financial Performance (Item 19)

Median Revenue

$637,055

per year, per location

Mean Revenue

$681,687

per year, per location

Profitability Estimate

Estimated Owner Profit

$73,261

per year

Profit Margin

11.5%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 6.3 years

Based on midpoint investment of $460,975 and estimated annual owner profit of $73,261.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

N/A

Net Unit Growth

+92 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 910 929
2023 929 952
2024 952 1002

Is a Cinnabon Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Cinnabon franchise opportunity:

Overall Score

80/100

Strong opportunity

Est. Payback Period

6.3 yrs

Longer payback

Risk Level

N/A

Insufficient data

Cinnabon scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $637,055 and a combined fee burden of 8.5% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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