Franchise Deep Dive: Cinnabon Franchise Costs, Fees, Profit and Data

LAST UPDATED: September 2024

FRANCHISE WEBSITE: https://development.gotofoods.com/cinnabon/

NUMBER OF LOCATIONS: 1,850+

REPORTED COST TO GET IN: $232,400 - $621,400

REPORTED ROI (Item 19): $699,585 (average net sales for FY 2022)

Cinnabon is a popular bakery chain renowned for the soft, fluffy texture and rich, sweet flavor of its signature cinnamon rolls. Since it was founded in 1985, Cinnabon has grown into an internationally recognized brand, with locations in shopping malls, airports and other high-traffic areas around the world. The company’s menu centers around its classic cinnamon rolls — made with Makara cinnamon and topped with a creamy, indulgent frosting — but also includes a variety of other baked goods, beverages and specialty items. 

How Many Cinnabon Locations Are There?

Founded by Rich Komen and Ray Lindstrom, the first Cinnabon bakery opened its doors on December 4, 1985 at SeaTac Mall (now The Commons at Federal Way) in Seattle, Washington. The brand quickly gained popularity, leading to the start of its franchising efforts in 1986. Today, Cinnabon has become a global phenomenon, with over 1,850 locations worldwide, including 1,025 bakeries in the U.S. and Canada.

What Is Cinnabon’s Business Model?

Cinnabon's business model is centered around delivering indulgent, high-quality baked goods, with its world-famous cinnamon rolls at the core. The brand operates primarily through franchising, offering entrepreneurs a chance to capitalize on Cinnabon's strong brand recognition and loyal customer base. The model is designed for scalability and adaptability, with various store formats — including mall-based locations, travel centers, and co-branded outlets — allowing franchisees to enter different market segments.

Cinnabon provides extensive support to its franchisees, including site selection, store design and ongoing training, ensuring that each location maintains the brand's high standards of quality and service. The business model also emphasizes innovation in marketing and product development, helping franchisees attract and retain customers. Cinnabon's focus on consistent product quality and strategic market placement makes it a compelling opportunity for franchisees looking to invest in a well-established and beloved brand.

How Much Can Cinnabon Franchise Owners Make?

According to Cinnabon’s 2023 Franchise Disclosure Document (FDD), the franchises open for the entirety of FY 2022 reported average net sales of $699,585:

• Top Quartile: $1,141,293
• 2nd Quartile: $749,351
• 3rd Quartile: $559,836
• Bottom Quartile: $347,860

How Much Does It Cost To Open a Cinnabon Franchise?

The initial investment required to begin operation of a standard Cinnabon bakery ranges from $232,400 to $621,400. According to the 2023 FDD, these costs break down as follows:

• Initial Franchise Fee: $30,500
• Construction & Buildout Costs: $97,000 - $262,000
• Permits: $500 - $1,000
• Equipment: $25,000 - $109,000
• Millwork: $20,000 - $42,000
• Menu Board & Interior Signage: $3,900 - $13,500
• Exterior Signage: $2,500 - $15,000
• Computer System: $6,000 - $24,000
• Smallwares: $2,500 - $5,000
• Architect/Engineer: $6,500 - $12,000
• Rent: $4,000 - $10,000
• Grand Opening Marketing: $2,500 - $7,500
• Legal & Accounting Fees: $5,000 - $10,000
• Insurance: $1,200 - $6,600
• Misc. Opening Costs: $1,800 - $6,800
• Security Deposits: $0 - $15,000
• Training & Support Fees: $0 - $3,500
• Training Expenses: $3,500 - $7,500
• Opening Inventory: $5,000 - $8,000
• Additional Funds (3 Months): $15,000 - $30,000

What Is the Franchise Fee for Cinnabon?

The initial franchise fee for a standard Cinnabon bakery is $30,500, which is due upon signing the franchise agreement.

Who Is on the Cinnabon Leadership Team?

• Jim Holthouser — Chief Executive Officer
• Mike Dixon — Chief Financial Officer, Treasurer and Assistant Secretary
• Brian Krause — Chief Development Officer
• Tracey-Ann Young — Chief Brand Officer
• Sarah Powell — Executive Vice President, General Counsel and Secretary
• Tim Goodman — Senior  Vice President, Franchise Administration

What Helpful Articles Can I Read To Learn More About Cinnabon?

• Cinnabon Signs Historic Deal with Innovative Union Company to Open 130 Units in the Kingdom of Saudi Arabia
• Cinnabon Sprinkles Some Sour with Its Sweet in a New Warheads Collaboration
• Our Commitment During COVID-19
• Wendy’s Teams with Cinnabon for New Breakfast Menu Item

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