How Much Does A Cinnabon Franchise Owner Make?

If you are an entrepreneur in search of a profitable bakery franchise, then Cinnabon must have crossed your mind.

So if you are curious to know how much a Cinnabon franchise owner make, then you are on the right page!

In this guide, you will find all the details related to the Cinnabon franchise, such as minimum requirements, franchise fees, revenue and profit figures, and much more.

How Much Does A Cinnabon Franchise Owner Make

About Cinnabon

Cinnabon was founded by father-son duo Rich Komen and Greg Komen in 1985 in Seattle, Washington.

The duo wanted to create the world’s greatest cinnamon roll, so they tried several different recipes and, after months of trial and error, perfected their signature cinnamon roll.

The taste of their delicious cinnamon rolls was so good that they ended up opening their first franchised store in Philadelphia right in the next year after starting their business.

Today, Cinnabon has expanded internationally with more than 1200+ Cinnabon locations in 50 countries worldwide.

And if you want to be eligible to buy a Cinnabon franchise, you need a minimum liquid capital of $120,000 and a minimum net worth of $300,000.

If you meet their minimum requirements, then keep on reading to find out how much does a Cinnabon franchise owner make and other details.

((https://www.cinnabon.com/company-info))

Read: When You Open A Franchise, Can You Inherit Debt?

Read: Rocking Deals Franchise


Cinnabon Franchise Key Investment Figures

Franchise fee$30,500
Royalty fee6.0%
Marketing fee4.0%
Investment (mid-point)$276,000
Average sales$395,000
Minimum net worth$300,000
Minimum liquid capital$120,000

How Much Does it Cost to Open a Cinnabon Franchise?

The cost to open a Cinnabon Franchise varies between $232,400 – $621,400, depending on the type of franchise model you choose.

Here’s how much investment you will need for different Cinnabon franchise models:

Bakery formatLowHighAverage
Express Bakery (in a new Schlotzsky’s)$23,600$45,500$34,550
Carvel co-branded bakery$383,000$746,300$564,650
Express Bakery$61,100$159,850$110,475
Concession Bakery (trailer)$112,000$228,500$170,250
Auntie Anne’s co-branded bakery$280,050$647,500$463,775
Concession Bakery (food truck)$152,000$248,500$200,250
Full Bakery (Non-traditional location)$125,500$423,100$274,300
Full Bakery (traditional location)$233,700$546,800$390,250
Total$276,063

How Much Does A Cinnabon Franchise Owner Make?

The sales figure of the Cinnabon franchise varies depending on the type of bakery outlet you choose, such as mall enclosed franchise, convenience store franchise, airport franchise, etc.

However, based on the sales figure of 431 franchised bakeries in 2021, a Cinnabon franchise owner makes net sales of $394,897 on average.

Here’s what the sales figure of Cinnabon Bakery looks like for different types of outlets:

Bakery formatNumber of restaurantsMedian net sales
Enclosed mall franchises169$595,413
Convenience franchises216$129,734
Auntie Anne’s co-branded46$903,340
Total431$394,898


How Much Does Cinnabon Employee Earn?

According to Indeed, Cinnabon pays its employees a minimum of $9.89 per hour and a maximum of $17.01 per hour on average.

So if we look at this in yearly terms, then the average Cinnabon salary ranges from $30,000 a year for the position of Operations Manager to $78,556 a year for the position of Facilities Manager.

Please note that this is an average figure, and the salary of a Cinnabon employee may be more or less than this depending on their designation, department, location, etc.


Pros & Cons Of Cinnabon Franchise

Pros Of Cinnabon Franchise

  • Globally recognized brand.
  • Profitable.
  • Variety of franchise models to choose from.
  • Provides training & support
  • Provides field and operations support.

Cons Of Cinnabon Franchise

  • Limited Menu.
  • Does not offer direct financing.
  • High-level competition due to common niche.

Cinnabon Franchise Average Revenue & Profit

Cinnabon Franchise makes an average sales of $394,898 a year and a profit of $58,163 a year on average with a 15% profit margin.

The profit margin of Cinnabon is low compared to the 25-27% industry standard of similar businesses. However, this is an average figure, and a Cinnabon franchise owner may make less or more depending on their location, operating expenses, type of franchise model, etc.

Here is how we calculated the profit of the Cinnabon franchise:

Profit-and-lossAmount ($)As % of sales
Sales$394,897100%
COGS$(98,724)25.0%*
Rent$(84,000)21.3%
Labor$(114,520)29.0%*
Royalty + marketing fees$(39,490)10.0%
Adjusted EBITDA$58,163~15%

Cinnabon Franchise Failure Rate

Have a look at the table below to find out the failure rate of Cinnabon franchise:

Outlet typeYearOutlets at the Start of the YearOutlets at the End of the YearNet Change
Franchised2019923932+9
2020932935+3
2021935938+3
Company-Owned2019110
202012+1
202121-1
Total Outlets2019924933+9
2020933937+4
2021937939+2

As we can see, over the last few years, Cinnabon has been expanding but at a low speed.

It has been growing at the average rate of 5 stores a year, which, if we compare with its total 939 outlets, shows saturation in the market.

So you must consider this factor before investing in the Cinnabon franchise.


Cinnabon Franchise Payback Period

To find out Cinnabon franchise payback period let us look at the following data:

AVERAGE INVESTMENT$276,000
AVERAGE REVENUE PER OWNER$394,898
AVERGAGE PROFIT PERCENTAGE15%
AVERGAGE PROFIT PER YEAR$58,163
AVERAGE PAYBACK PERIOD5 years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 276000/58163 = 4.74 = 5 Years based on median

The average investment for a Cinnabon Franchise is $276,000.

With an average profit percentage of 15%, the average profit per year is $394,898.

This means that the average payback period for a Cinnabon Franchise is 5 years, and the total investment of $276,000 would be recouped within this period


Facts About Cinnabon

  • Cinnabon was acquired by Roark Capital Group in 2004, and so it is now owned by FOCUS Brands.
  • The classic cinnamon roll of Cinnabon contains 890 Calories, and yet they sell 100 million of those each year.
  • During the holidays, the sale of Cinnabon spikes so much that they call that time of the year “Jollybon.”
  • The first Cinnabon store was opened in SeaTac Mall.
  • To lure customers to the store with the fragrance of freshly baked Cinnamon rolls, Cinnabon intentionally keeps their ovens at the front of each location.
  • Cinnabon offers free bites on every 15th of April.
  • You can get Cinnabon delivered by Postmates in select cities.

((https://www.thrillist.com/eat/nation/things-you-didnt-know-about-cinnabon-trivia-about-the-mall-chain))


What Is Cinnabon Best Known For?

Cinnabon is best known for its delicious, soft, and freshly baked cinnamon rolls.

They import special cinnamon called Makara cinnamon from tropical forests in Indonesia, which is their key ingredient and the secret behind their tempting fragrance and taste.

Also, they serve freshly baked Cinnamon rolls with their smooth, Ooey-Gooey topping that takes the taste of their cinnamon rolls to the next level.

If you have never been to Cinnabon before, then here are some popular items that you must try:

  • Classic Roll
  • CinnaSweeties
  • Caramel PecanBon
  • Strawberries & Cream Chillatta
  • Oreos & Cream Chillatta
  • MochaLatta Chill
  • Double Chocolate Mocha Chillatta
  • Raspberry Lemonade
  • Caramel Pecan BonBites
  • Cinnamon Roll Cold Brew Iced Coffee
  • Vanilla Cold Brew Iced Coffee
  • Classic BonBites


Read: How Much Does A Smoothie King Franchise Owner Make?


Is Cinnabon Franchise Profitable?

Cinnabon is definitely a profitable franchise, with franchise owners making $58,163 in profit each year on average.

However, if we compare this with the initial investment of $232,400 – $621,400 required to start a Cinnabon franchise, then we feel that the investment cost is way higher than the rate of return.

So you will most likely make a profit by investing in this franchise, but it will not be as high. 


Cinnabon Franchise Earning Potential

Cinnabon is quite popular, and customers love their freshly baked Cinnamon rolls. However, after looking at the growth rate of Cinnabon, we are not sure if it has a high earning potential.

As we saw above in the article, between 2019 and 2021, Cinnabon grew at the rate of only 5 units a year, which, if we compare it with its total 939 outlets, shows saturation in the market.

As such, with saturation in the market, the company’s earning potential will also take a hit. So you should take this factor into account before you decide to invest in this franchise.


Wrap Up

So after looking at the key figures of the Cinnabon franchise, here’s what we conclude:

Cinnabon has a great reputation and global presence, but because of a low-profit margin, you can make an average of only $58,163 in profit each year.

If we compare this with the investment amount needed to start Cinnabon ($232,400 – $621,400), clearly, the ROI is not much.

Also, there is not much potential to earn high-profit because of external competition and saturation in the market.

We recommend you to check out similar bakery businesses such as Crumbl Cookies instead if you want a safer investment option.


Frequently Asked Questions

How much royalty and marketing fee does Cinnabon charge?

Cinnabon charges a royalty fee of 6% of net sales and marketing fees of 1.5% – 3% of net sales, depending on the type of franchise model you choose.

What is the intial franchise fee of Cinnabon?

Cinnabon charges an initial franchise fee of $30,500.

Does Cinnabon offer franchising?

No, Cinnabon does not offer direct franchising. However, they can provide you with a list of qualified lenders who can help you with financing.

 

Leave a Comment