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 makes, 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.
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 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 a Cinnabon franchise owner makes and other details.
((https://www.cinnabon.com/company-info))
Cinnabon Franchise Key Investment Figures
| Cost or Fee | Amount or Percentage |
|---|---|
| Franchise fee | $30,500 |
| Royalty fee | 6.0% |
| Marketing fee | 4.0% |
| 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 format | Low | High | Average |
|---|---|---|---|
| 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 format | Number of restaurants | Median net sales |
|---|---|---|
| Enclosed mall franchises | 169 | $595,413 |
| Convenience franchises | 216 | $129,734 |
| Auntie Anne’s co-branded | 46 | $903,340 |
| Total | 431 | $394,898 |
Cinnabon Franchise Average Revenue & Profit
Cinnabon Franchise makes an average sales of $394,898 a year and a profit of $58,163 a year on average, with a 15% profit margin, considering the owner’s salary.
The profit margin of Cinnabon is low compared to the 25-27% industry standard of similar businesses. However, this is an average figure, and a Cinnabon franchise owner may make less or more depending on their location, operating expenses, type of franchise model, etc.
Here is how we calculated the profit of the Cinnabon franchise:
| Cinnabon Franchise Statement | Amount ($) |
|---|---|
| Cinnabon Franchise Revenue | $394,897 |
| COGS | $(98,724) |
| Rent | $(84,000) |
| Labor | $(114,520) |
| Royalty + marketing fees | $(39,490) |
| Cinnabon Franchise Profit | $58,163 |
Cinnabon Franchise Failure Rate
Have a look at the table below to find out the failure rate of the Cinnabon franchise:
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 923 | 932 | +9 |
| 2020 | 932 | 935 | +9 |
| 2021 | 935 | 938 | +3 |
For the Franchised outlets:
- In 2019, the growth rate was (9)/923×100≈0.97%
- In 2020, the growth rate was (9)/932×100≈0.96%
- In 2021, the growth rate was (3)/935×100≈0.32%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 1 | 1 | 0 |
| 2020 | 1 | 2 | +1 |
| 2021 | 2 | 1 | -1 |
For the Company-Owned outlets:
- In 2019, the growth rate was (0)/1×100≈0%
- In 2020, the growth rate was (1)/1×100≈100%
- In 2021, the failure rate was (2)/1×100≈200%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 924 | 933 | +9 |
| 2020 | 933 | 937 | +4 |
| 2021 | 937 | 939 | +2 |
For Total outlets:
- In 2019, the growth rate was (9)/924×100≈0.97%
- In 2020, the growth rate was (4)/933×100≈0.42%
- In 2021, the growth rate was (2)/937×100≈0.21%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
The franchised outlets for Cinnabon grew from 2019 to 2021, showing a growth rate between 0.97% and 0.32%. On the other hand, for company-owned outlets, the growth rate of Cinnabon is lying in the range between 0% and 200% for the same period of time.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Cinnabon franchise has expanded in the years 2019-2021, showing a total growth rate between 0.97% and 0.21%.
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.
Cinnabon Franchise Payback Period
To find out the Cinnabon franchise payback period let us look at the following data:
| AVERAGE INVESTMENT | $276,000 |
| AVERAGE REVENUE PER OWNER | $394,898 |
| AVERAGE PROFIT PERCENTAGE | 15% |
| AVERAGE PROFIT PER YEAR | $58,163 |
| AVERAGE PAYBACK PERIOD | 5 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.
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.
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.
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 every 15th of April.
- You can get Cinnabon delivered by Postmates in select cities.
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
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.
Who Founded Cinnabon?
Cinnabon was founded in the year 1985 by Greg Komen and Rich Komen.
Where is Cinnabon Headquartered?
The headquarters of Cinnabon is located at 5620 Glenridge Dr., Atlanta.
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.