In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Cinnabon franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Cinnabon franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Cinnabon outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Cinnabon franchise opportunity

Section V – Presentation and analysis of Cinnabon’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 192 Cinnabon enclosed mall franchises that were eligible franchises in fiscal year 2023 (an “eligible franchise” is a franchise that reported sales in all 53 weeks of fiscal year 2023)

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 197 Cinnabon convenience franchises that were eligible franchises in fiscal year 2023

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 59 Cinnabon-Auntie Anne’s co-branded franchises that were eligible franchises in fiscal year 2023

Section VI – Key ratios, comparables, computations, and analyses for the Cinnabon franchise opportunity (exclusive content for Platinum subscribers)

Section I – Cinnabon Franchise Costs

• Initial Franchise Fee:  $30,500
• Construction and Build Out Costs:  $99,800 to $297,000
• Permitting:  $2,400 to $7,900
• Equipment Package:  $45,000 to $108,000
• Millwork:  $20,000 to $40,000
• Menu Board, Graphics, and Interior Signage:  $2,000 to $12,000
• Exterior Signage:  $2,300 to $15,000
• Computer System:  $7,400 to $27,400
• Smallwares:  $3,500 to $7,000
• Architect/Engineer:  $4,200 to $18,800
• Rent:  $4,000 to $10,000
• Grand Opening Marketing:  $2,500 to $7,500
• Legal and Accounting Fees:  $5,000 to $10,000
• Insurance:  $1,250 to $6,800
• Miscellaneous Opening Costs/Office Supplies:  $1,800 to $6,800
• Security Deposits:  $0 to $15,000
• Management Training Program Fee:  $0 to $2,500
• Travel and Living Expenses During Training:  $3,100 to $5,100
• On-Site Training Fee:  $0 to $6,100
• Opening Inventory:  $5,000 to $8,000
• Additional Funds for 3 Months:  $15,000 to $33,000
• Total Estimated Cinnabon Franchise Costs:  $254,750 to $674,400

Section II – Cinnabon’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $5,500 to $30,500

• Royalty Fee:  6% of Net Sales, except: Auntie Anne’s Co-Branded Bakeries in Other Locations: 6% of Net Sales attributed to Cinnabon; 7% of Net Sales attributed to Auntie Anne’s, which Auntie Anne’s may increase in its sole discretion to 8% of Net Sales. Express Bakeries in a Schlotzsky’s: then-current product price per case.

• Advertising Contribution:  Bakeries in Other Locations (except Auntie Anne’s Co-Branded Bakeries): currently, 2.5% of Net Sales. Auntie Anne’s Co-Branded Bakeries in Other Locations: currently, 2.5% of Net Sales attributed to Cinnabon and 1.5% of Net Sales attributed to Auntie Anne’s. Bakeries in Streetside Locations: currently, 3% of Net Sales. Swirl Bakeries (any location): currently, 3% of Net Sales. Express Bakeries in a Schlotzsky’s: not charged

• Adverting Cooperative Contribution:  an amount set by your Advertising Cooperative

• Local Marketing Obligation:  currently, each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising

Section III – Number of Franchised and Company-Owned Cinnabon Outlets

Franchised

2021

• Outlets at the Start of the Year:  908
• Outlets at the End of the Year:  910
• Net Change:  +2

2022

• Outlets at the Start of the Year:  910
• Outlets at the End of the Year:  929
• Net Change:  +19

2023

• Outlets at the Start of the Year:  929
• Outlets at the End of the Year:  952
• Net Change:  +23

Company-Owned

2021

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  25
• Net Change:  +1

2022

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  27
• Net Change:  +2

2023

• Outlets at the Start of the Year:  27
• Outlets at the End of the Year:  22
• Net Change:  -5

Section IV – News Updates on the Cinnabon Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Cinnabon Franchise (Item 19, 2024 FDD)

• This Item 19 presents information about the financial performance during Fiscal Year 2023 (the fiscal year ended December 31, 2023) of certain Enclosed Mall Franchises, Convenience Franchises, and Auntie Anne’s Co-Branded Franchises that were eligible franchises in Fiscal Year 2023.

• An “Enclosed Mall Franchise” is a franchised Full Bakery that is located in an enclosed mall.

• A “Convenience Franchise” is a franchised Full Bakery that is located in a travel plaza, travel center, or convenience store.

• An “Auntie Anne’s Co-Branded Franchise” is a franchised Auntie Anne’s Co-Branded Bakery.

• An “eligible franchise” is a franchise that reported sales in all 53 weeks of Fiscal Year 2023.

• This Item 19 does not include data related to (i) franchised Full Bakeries that are located in Traditional Locations or Non-Traditional Locations other than the Enclosed Mall Franchises, Convenience Franchises, and Auntie Anne’s Co-Branded Franchises represented in these tables; (ii) Express Bakeries; (iii) Concession Bakeries; (iv) Co-Branded Franchises (other than the Auntie Anne’s Co-Branded Franchises represented in Part 3), including for purposes of this
  Item 19 only Bakeries that are co-branded with brands other than Auntie Anne’s or Carvel; (v) affiliate-owned Bakeries; and (vi) Full Bakeries that were not eligible franchises in Fiscal Year 2023.

• The financial performance and operations of these excluded Bakeries can vary significantly from the performance and operations of the Bakeries represented in this Item 19.

Part 1 – Average Net Sales by Quartiles – Enclosed Mall Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $1,165,007
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  16/48 (33%)
• Median Net Sales:  $1,102,127
• Lowest Net Sales:  $872,769
• Highest Net Sales:  $2,917,749

2nd Quartile

• Average Net Sales:  $777,307
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  25/48 (52%)
• Median Net Sales:  $785,756
• Lowest Net Sales:  $664,210
• Highest Net Sales:  $865,037

3rd Quartile

• Average Net Sales:  $571,497
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  23/48 (48%)
• Median Net Sales:  $567,364
• Lowest Net Sales:  $483,449
• Highest Net Sales:  $662,104

Bottom Quartile

• Average Net Sales:  $367,245
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  25/48 (52%)
• Median Net Sales:  $371,306
• Lowest Net Sales:  $145,982
• Highest Net Sales:  $480,765

Total

• Average Net Sales:  $720,264
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  86/192 (45%)
• Median Net Sales:  $663,157
• Lowest Net Sales:  $145,982
• Highest Net Sales:  $2,917,749

• As of December 31, 2023, there were 221 Enclosed Mall Franchises. Of those 221 locations, 192 (86.9%) Enclosed Mall Franchises are represented in this table.

• This table does not include (i) 19 Enclosed Mall Franchises that are Co-Branded Franchises (other than any Auntie Anne’s Co-Branded Franchises represented in Part 3), (ii) four Enclosed Mall Franchises that did not report sales in all 53 weeks of Fiscal Year 2023, and (iii) six Enclosed Mall Franchises that opened during Fiscal Year 2023.

• This table also does not include four Enclosed Mall Franchises that permanently closed during Fiscal Year 2023, all of which had been open for at least 12 months prior to closing. No Enclosed Mall Franchises were reacquired by Cinnabon in Fiscal Year 2023.

Part 2 – Average Net Sales by Quartiles – Convenience Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $320,942
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  14/50 (28%)
• Median Net Sales:  $285,794
• Lowest Net Sales:  $226,177
• Highest Net Sales:  $723,168

2nd Quartile

• Average Net Sales:  $187,713
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  24/49 (49%)
• Median Net Sales:  $185,296
• Lowest Net Sales:  $157,878
• Highest Net Sales:  $220,276

3rd Quartile

• Average Net Sales:  $138,235
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  23/49 (47%)
• Median Net Sales:  $135,863
• Lowest Net Sales:  $116,489
• Highest Net Sales:  $157,637

Bottom Quartile

• Average Net Sales:  $81,716
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  28/49 (57%)
• Median Net Sales:  $84,622
• Lowest Net Sales:  $18,699
• Highest Net Sales:  $114,250

Total

• Average Net Sales:  $182,856
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  77/197 (39%)
• Median Net Sales:  $157,878
• Lowest Net Sales:  $18,699
• Highest Net Sales:  $723,168

• As of December 31, 2023, there were 263 Convenience Franchises. Of those 263 locations, 197 (74.9%) Convenience Franchises are represented in this table.

• This table does not include (i) 18 Convenience Franchises that are Co-Branded Franchises, (ii) one Convenience Franchise that converted from a Co-Branded Franchise to a single-branded Bakery during Fiscal Year 2023, (iii) 35 Convenience Franchises that were temporarily not operating during all or a portion of Fiscal Year 2023, and (iv) 12 Convenience Franchises that opened during Fiscal Year 2023.

• This table also does not include nine Convenience Franchises that permanently closed during Fiscal Year 2023, all of which had been open for at least 12 months prior to closing. No Convenience Franchises were reacquired by Cinnabon in Fiscal Year 2023.

Part 3 – Average Net Sales by Quartiles – Auntie Anne’s Co-Branded Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $1,857,839
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  6/15 (40%)
• Median Net Sales:  $1,720,623
• Lowest Net Sales:  $1,459,403
• Highest Net Sales:  $2,988,886

2nd Quartile

• Average Net Sales:  $1,282,854
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  8/15 (53%)
• Median Net Sales:  $1,291,542
• Lowest Net Sales:  $1,127,288
• Highest Net Sales:  $1,447,285

3rd Quartile

• Average Net Sales:  $1,015,346
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  7/14 (50%)
• Median Net Sales:  $1,027,657
• Lowest Net Sales:  $900,447
• Highest Net Sales:  $1,114,306

Bottom Quartile

• Average Net Sales:  $585,609
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  8/15 (53%)
• Median Net Sales:  $595,074
• Lowest Net Sales:  $217,299
• Highest Net Sales:  $863,156

Total

• Average Net Sales:  $1,188,294
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  24/59 (41%)
• Median Net Sales:  $1,127,288
• Lowest Net Sales:  $217,299
• Highest Net Sales:  $2,988,886

• As of December 31, 2023, there were 63 Auntie Anne’s Co-Branded Franchises. Of those 63 locations, 59 (93.7%) Auntie Anne’s Co-Branded Franchises are represented in this table.

• This table does not include three Auntie Anne’s Co-Branded Franchises that opened during Fiscal Year 2023. This table also does not include one Co-Branded Bakery that converted to an Auntie Anne’s Co-Branded Franchise during Fiscal Year 2023.

• No Auntie Anne’s Co-Branded Franchises were reacquired by Cinnabon or permanently closed during Fiscal Year 2023.

• Net Sales for Auntie Anne’s Co-Branded Franchises includes revenue generated from the sale of both Auntie Anne’s and Cinnabon products.

• Some Bakeries have sold or earned this amount. Your individual results may differ. There is no assurance that you will sell or earn as much.

Section VI – Cinnabon Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️