Known for its delicious, soft cinnamon rolls and other bakery treats, Cinnabon is a brand that’s beloved by many. Serving tasty treats for over 25 years, Cinnabon has gained a cult following for its classic cinnamon roll and other delectable pastries. If you’re looking to become a part of the Cinnabon family, becoming a franchisee may be your best option.
If you have previous experience in retail management or food service, opening a Cinnabon franchise can be a great way to become self-employed and build a business for yourself. However, there are specific requirements that must be met in order to open one of their franchises.
Below, we’ll discuss the costs, requirements, and steps for opening a Cinnabon franchise. Read on to find out whether this might be the right business opportunity for you.
About Cinnabon Franchise
Cinnabon is an American chain of baked goods stores and kiosks typically found in areas with high pedestrian traffic. Their motto is “Life needs frosting” – a philosophy they take to heart, serving delicious treats in the form of their signature cinnamon rolls, as well as other pastries, cakes, and desserts.
The Cinnabon experience starts with their iconic cinnamon roll, freshly made in-store daily, with a unique blend of Makara cinnamon and brown sugar. This secret recipe creates an incredibly soft, fluffy pastry topped with cream cheese frosting. It’s no wonder why this beloved treat has gained such a cult following over the years!
In addition to their classic cinnamon roll, Cinnabon offers a variety of hand-crafted pastries, snack wraps, sandwiches, and more. Some locations even offer the indulgent BonBites: bite-sized pieces of their famous cinnamon rolls for those craving something sweet on the go. And if you prefer a dairy-free delight, many locations carry vegan buns or gluten-free treats.
For those seeking to become part of the Cinnabon family, becoming a franchisee could be an excellent option for you. Most Cinnabon franchises are found in areas with high pedestrian traffic, such as shopping malls, airports, and rest stops, so the potential for a successful business is there.
Cinnabon Franchise History
Cinnabon has been a part of the culinary landscape since it was founded in 1985 by the father-son duo Rich and Greg Komen. With a mission to create the “world’s greatest cinnamon roll” from scratch, they hired master baker Jerilyn Brusseau to help them finalize their recipe.
On December 4, 1985, the first Cinnabon Bakery opened up in SeaTac Mall in Seattle, Washington. It began as a small business with just a few employees and quickly became a hit with customers, who queued up around the block to sample their famous cinnamon rolls.
The success of this initial store led to the opening of their first franchise-operated store at the King of Prussia Mall in August 1986. As word spread about Cinnabon’s delicious treats, their bakery locations began popping up across the country.
In 1998, Cinnabon was bought by AFC Enterprises for $65 million and then sold again in 2004 for $30.3 million to Focus Brands, whose parent company is Roark Capital Group. Today, there are more than 1,500 bakeries located in 48 countries around the world.
Cinnabon continues to delight customers with its classic cinnamon rolls and other hand-crafted pastries. With a variety of options available, families can now enjoy Cinnabon’s delicious bakery treats wherever they go!
Franchise Model Table
| Initial Investment | $180,050–$385,500 |
| Franchise | YES |
| Franchise Fee | $30,000 |
| Royalty Fee | 6% |
| Liquidity | $120,000 |
| Estimated Outlets | 1500+ |
How Much Does It Cost To Open A Cinnabon Franchise?
The cost of opening a Cinnabon franchise can be daunting, but the potential rewards make investing in this well-known bakery chain worth considering.
In order to open a Cinnabon franchise, potential franchisees must first submit an application and be approved by the Franchise Department. Once approved, you will need to pay an initial franchising fee of $30,000. This money is used towards registering your business and developing your brand identity, as well as other administrative fees associated with getting started.
In addition to the upfront cost of the franchising fee, you will need to invest in establishing your store and purchasing equipment and supplies. The total investment required can vary greatly depending on factors such as the size and location of your store. Typically, you should expect to spend anywhere between $180,050 and $385,500 when opening a Cinnabon franchise.
On top of this capital outlay for setting up shop, you will also need liquid capital amounting to at least $120,000 when opening a Cinnabon franchise. This money is required to ensure that you are able to cover your store’s operating expenses for at least six months until the business is profitable.
Finally, all Cinnabon franchisees must pay an ongoing royalty fee of 6% of their gross sales to the parent company as well as a monthly advertising fund contribution of 1.5%–3%. As part of this requirement, you will need to adhere to the company’s brand standards and operations protocols.
Cinnabon Franchise Requirements
The first and most important requirement to becoming a Cinnabon franchisee has the necessary capital. Specifically, you must have at least $400,000 in net worth and $120,000 in liquid capital to cover operating expenses for at least six months until the business is profitable.
In addition to financial requirements, potential franchisees must also meet certain operational criteria.
For example, successful candidates must have restaurant management experience and demonstrate an understanding of how to manage staff and handle customer service issues. A commitment to giving back to the local community is also essential for any prospective franchisee, as Cinnabon values being involved with their local communities.
Cinnabon Franchise Training And Support
Once an application is accepted, Cinnabon franchisees can access a range of support options, from certified training to ongoing consultation visits.
The company offers comprehensive training for both franchisees and key managers in the field via their dedicated WOW University. This institute provides certified courses covering topics such as operations, marketing, human resources, and finance.
Cinnabon also offers online training tools and support services that allow franchisees to access resources at any hour of the day. These resources include webinars, e-learning courses, and videos to guide entrepreneurs through every stage of their business journey.
In addition to general training and support, Cinnabon also provides specialized assistance in areas such as real estate development and store design, marketing strategies for local stores, and promotional materials for nationwide campaigns.
Cinnabon Franchise Terms Of Agreement & Renewal
Cinnabon Franchises have different terms of agreement and renewal, depending on the kind of bakery that you open.
If you open a full bakery (including a café), the initial term is 20 years and renewable for additional 20 years upon meeting renewal requirements.
If you open an express bakery (without a café space), the initial term is five years, with an additional five years upon meeting renewal requirements.
Finally, if you open a concession bakery (usually located in malls or airports), there is no option to renew as the initial term is five years, and the franchise agreement can not be extended.
Cinnabon Franchise Obligations and Restrictions
To become the Owner of the Cinnabon Franchise, all parties agree to certain obligations and restrictions.
One of these is the commitment to follow the company’s brand standards and operations protocols. This includes following recipes and preparing ingredients in accordance with set guidelines as well as abiding by local health codes.
Franchisees are not required to take part in the day-to-day management of the bakery, although they are permitted to do so if they wish. Additionally, franchisees must only sell approved Cinnabon products and may not manufacture or distribute their own products under the franchise name.
Cinnabon Franchise Financial Assistance
Cinnabon does not provide any kind of direct or indirect financial assistance to franchisees. However, the company does have relationships with various banks and lenders that can provide financing to franchisees who meet their criteria.
Franchisees can also access third-party financing through Small Business Administration (SBA) loans or other forms of debt. It is important to note that Cinnabon does not guarantee any financial assistance, and franchisees are responsible for all associated costs.
Cinnabon Comparison
| Company | Cinnabon | Nothing Bundt Cakes |
|---|---|---|
| Founded In | 1985 | 1997 |
| Initial Investment | $23,100-$430,900 | $326,003 – $422,293 |
| Franchise-Fee | $30,000 | $35,000 |
| Total Outlet | 1,100 | 430 |
| Annual Revenue | $1.3 Million | $332 Million |
Conclusion
Cinnabon is a highly successful bakery franchise that has been in operation since 1985. The company is committed to helping entrepreneurs succeed and provides comprehensive training and support to help franchisees meet their goals.
If you’re passionate about baking and are looking for a franchise opportunity, Cinnabon could be the perfect fit. With an emphasis on brand standards and local community involvement, this is a great option for aspiring business owners.
Frequently Asked Questions
Is Cinnabon a franchise that can be run from home?
No. Cinnabon is not a franchise that can be run from home.
Is there a Veteran Discount at Cinnabon?
Yes. A veteran discount is available at the Cinnabon franchisee.
What is the value of a Cinnabon franchise?
The demand for your products, labor expenses, commercial lease rates, and other factors affect your bottom line.
Is Cinnabon a franchise?
Yes, Cinnabon started franchising in 1986 and has since grown to become one of the largest bakery franchises in the United States.
Who is the Owner of Cinnabon?
The Focus Brands family of brands, an affiliate of global private equity firm Roark Capital Group owns Cinnabon. The company was founded in 1985 by Rich Komen and Greg Komen, who wanted to bring to life the signature cinnamon roll.
How Many Cinnabon Locations Are There?
As of 2023, there are over 1,500 Cinnabon locations across 48 countries worldwide.
Is Opening A Cinnabon Franchise Worth It?
Opening a Cinnabon franchise is an excellent way to get into the food industry and build long-term success. With a 15% profit margin, franchisees can recoup their investments relatively quickly.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.