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

LAST UPDATED: December 15, 2022

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

NUMBER OF LOCATIONS: 1,600+ locations (939 in the U.S.)

REPORTED COST TO GET IN: $233,700 - $546,800 (for traditional build-out)

REPORTED ROI (Item 19): $637,055 (average net sales of Enclosed Mall Franchises)

Cinnabon is an American baked goods chain famous for its stores and kiosks, mostly located inside shopping malls, that have become synonymous with the cinnamon roll. It is owned by the parent company Focus Brands. Cinnabon competes against other businesses like Krispy Kreme, Auntie Anne’s and Wetzel’s Pretzels.

How Many Cinnabon Locations Are There?

As of December 2017, Cinnabon had more than 1,200 stores operating in 48 countries — 939 of those are in America, with only one company-owned outlet. Today, Cinnabon has over 1,600 branches worldwide, with over 900 of them in the United States. Although the COVID-19 pandemic hit the company hard, with revenue declining slightly and growth slowing to just five new stores open per year, Cinnabon has maintained its position as a top franchise opportunity and was recently ranked 28th in Entrepreneur’s 2022 Franchise 500 — its highest position to date. 

Cinnabon was founded in Seattle in 1985 by a father and son duo, Rich and Greg Komen. Their first bakery was in the SeaTac Mall in Seattle, where they introduced to the public what we all know now as Cinnabon’s Classic Roll. Their brand started franchising a year later, with the first franchisee opening in Philadelphia. 

Now, Cinnabon is owned by parent company Focus Brands, Inc, whose portfolio includes Auntie Anne’s, Jamba Juice, Carvel Ice Cream, Moe’s Southwest Grill, McAlister’s Deli, and Schlotzky’s. That is why many of the Focus concepts often operate in co-branded locations or cross-sell each other’s products.

Today, customers can’t get enough of Cinnabon — the chain recently ranked in the Top 10 for eliciting brand intimacy, according to MBLM’s Brand Intimacy 2022 Study.

What is the Cinnabon Business Model?

Cinnabon offers franchise partners single, multi-unit and co-branding bakery business models, each with its own individual floor plans, costs and operations. There are broken down into five types:

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 events 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.

How Much Can Cinnabon Franchise Owners Make?

The financial performance representations in Cinnabon’s 2021 Franchise Disclosure Document show median franchise sales of $595,413, with $637,055 in average net sales for Enclosed Mall Franchises. Based on the median sales provided by Cinnabon’s franchise locations, at an average of a 15% profit margin, it will take around seven years to recoup the initial investment.

How Much Does it Cost to Open a Cinnabon?

To start a Cinnabon Franchise, you need $120,000+ in liquid capital and a $300,000 minimum net worth.

The estimated total investment necessary to begin the operation of a traditional Cinnabon location is between $233,700 to $546,800. The following costs are part of the upfront costs included in the initial investment for a Cinnabon store. Many of these are one-time fees that are needed to launch the franchise.

Type of Expenditure                                           Low             High       To Whom Payment Will Be Made

Ongoing costs include:

• Royalty: 6% of Net Sales.
• Marketing Fee: 1.5% of Net Sales for non-streetside locations. 3% of Net Sales for streetside locations.
• Local Marketing: At least 1% of Net Sales.

What if the Franchise Fee for Cinnabon?

The initial Cinnabon Franchise Fee is $30,500, which must be paid to the franchisor upfront when opening a Cinnabon franchise.

Who is the Leadership of Cinnabon?

• Jim Holthouser - Chief Executive Officer for Focus Brands
• Guillermo Cremer - Chief People Officer for Focus Brands
• Mike Dixon - Chief Financial Officer for Focus Brands
• Brian Krause - Chief Development Officer for Focus Brands
• Tracey-Ann Young - Chief Brand Officer for Cinnabon
• Anissa Mandell-Chance - SVP, Supply Chain
• Kerri Christian - SVP of Specialty Category Marketing

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

• Cinnabon FDD
• Cinnabon Franchise (Costs + Fees + FDD)
• Cinnabon Franchise Cost Is High for ROI (2022) - Vetted Biz
• Is the Cinnabon Franchise a Good Investment?

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, 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 advice, nor does any information in the email 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.