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Is the Cinnabon Franchise a Good Investment?

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Since its inception in 1985, the Cinnabon bakery has expanded to over 55 countries, with over 1700 locations. Though the bakery industry’s growth has declined in the last five years, it is expected to grow significantly in the next five years in the US market. Cinnabon franchise bakeries typically generate a large portion of its revenue from the sale of coffee and other beverages. Its vision is quite simple – to be a global player in the snack industry and a best-in-class bakery and coffee shop franchise serving baked goods and specialty-blended beverages in over 55 countries. 

Customers can buy cinnamon rolls by the slice or whole roll, as well as other baked goods and coffee beverages. Cinnabon Bakeries are typically staffed by outgoing, friendly team members who enjoy interacting with customers. If you are interested in such a franchise, please read the following article.

Cinnabon franchise

What is the Cinnabon franchise?

Cinnabon’s first bakery focused solely on cinnamon rolls, with a sign proclaiming “World Famous Cinnamon Rolls.” It opened its first franchise location in August 1985, just outside Philadelphia at the Queen of Prussia Mall. In 1990. Cinnabon owners excel in the food service industry and enjoy giving back to their community. The company believes in working together to help you be successful and happy every day. 

It provides the following Franchise Partners the bakery franchise opportunities including

  •  single-unit, 
  • multi-unit, and 
  • co-branding opportunities. 

Efficient, customizable Bakery designs to maximize return on investment Access to a passionate and dedicated Franchise Support Team. As the Cinnabon brand was promoted through various venues, the company focused on being diverse and flexible, with multiple options for franchisees. To assist us in meeting our objectives, the Cinnabon brand assembled a team of experts in operations, marketing, development, and training.

Cinnabon Market Presence in the United States

Cinnabon Franchise Locations Available 

Cinnabon® is open to expanding in all states, but Missouri, Illinois, Louisiana, Florida, Tennessee, Ohio, Kentucky, Texas, Pennsylvania, New York, New Jersey, Maryland, South Dakota, North Dakota, and Washington are among the states with immediate opportunities.

Cinnabon, LLC, a bakery company founded in 1985, owns and operates cinnamon roll bakeries around the world. The Cinnabon, LLC headquarters are in Atlanta, Georgia. The company provides It sells cinnamon rolls, as well as other baked goods and beverages. Franchised locations are located in high-traffic areas such as shopping malls, airports, train stations, travel plazas, entertainment centers, academic institutions, and military establishments.

An open floor plan in a Cinnabon Bakery allows customers to see the baking and decorating process. Customers who want to eat in the bakery can do so as well. Cinnabon locations can now include universities, gas stations, rapid transit stations, casinos, and amusement parks. 

Facts You Should Know on Cinnabon Franchise

There are some lesser-known facts about owning this franchise that you may not be aware of. For example, did you know that you are required to sell a minimum number of cinnamon rolls each day? If you fail to do so, you may be subject to a fine. Also, the baking equipment used to make the cinnamon rolls is very expensive and must be regularly maintained.

  1. It is one of the most successful franchise businesses in the United States and Canada.
  2. The Cinnabon brand is well-known and respected.
  3. The Cinnabon system is easy to operate and manage.
  4. The franchisor provides a high level of support to franchisees.
  5.  The Cinnabon business model is scalable.
  6. The Cinnabon system is successful and profitable and growing rapidly.

FOCUS Brands Systems and LLC’s wholly owned subsidiary is Cinnabon Franchisor LLC. As of December 2017, there were over 1,200 Cinnabon bakeries in 48 countries. Its headquarters are located in Sandy Springs, Georgia, USA.

Brands under FOCUS brands are 

  • Auntie Anne’s Franchise 
  • Carvel Franchise
  • Cinnabon 
  • Jamba Juice Franchise
  • Moe’s Southwest Grill Franchise
  • Schlotzskys Franchise
  • Mcalister’s deli franchise

Cinnabon Franchise Information
Industry TypeFood
Sub Category
Cinnamon Rolls, Baked Goods
Year Established1985
Company NameThe Cinnabon, LLC
Founder/Management HeadTracey-Ann Young, Chief Brand Officer
Franchising Started1986 (36 years)
Employees at Company H.O31
Franchise Expansion PlanThe united statesAnd worldwide 
Number of Units
Number of Franchise Units1,754 (as of 2022)
Social Media HandlesFacebook
Twitter
Instagram
Company Office location5620 Glenridge Dr. N.E.Atlanta, GA 30342

Cinnabon Franchise Requirements

Cinnabon® is looking for highly motivated Franchise Partners to help us expand our franchise network. Its Partners must have the following qualifications

1. Restaurant management experience as an owner and/or operator

2. A desire to own their own Cinnabon Bakery franchise and create lasting memories for their guests.

3. A desire to give back to their community

4. The minimum net worth of $300,000

Cinnabon Franchise formats

As a Cinnabon franchisee, your success will depend on your ability to create a memorable and compelling experience for your guests. To make sure you’re doing everything you can to create a positive impression, here are some tips to keep in mind.

Below are its formats, see which suits you

  1. Cinnabon Franchise Kiosk Format
  2. The Cinnabon Franchise Bakery Format
  3. Cinnabon Franchise in-line Format
  4. Cinnabon Franchise Co-branding Format

Cinnabon franchise

How much does a Cinnabon franchise cost?

According to various sources, the Cinnabon franchise cost ranges between $233,700 and $546,800 per location. The price will vary depending on the store. The net worth requirement will be approximately $300,000, with a cash requirement of $120,000. 

The Cinnabon initial franchise fee is up to $30,500. The royalty fee will be 6% of gross sales, with a 1.5% ad-marketing fee. Veterans will receive a 10% discount on the initial franchise fee.

Cinnabon Franchise Cost in the United States

Cinnabon Franchise Initial and On-going Cost 
Cinnabon Franchise Fee$ 30,500
Cinnabon Franchise  Cost$233,700- $546,800
Royalty Fee6%
Advertising Fee1.5%
Term of Agreement20 years
Is franchise term renewable?Yes
Renewable Franchise Fees50% of Initial Franchise fees

Cinnabon Franchise Training

Before they can be involved in the operation of the bakery, trainees (including one franchise manager (who may be the franchisee or the primary contact), one other employee involved in the operation of the business, and any other individuals that the franchisor designates) must attend and successfully complete the Management Training Program (also known as “WOW University”) to the satisfaction of the franchisor. Before franchisees can open their bakery, at least two of the required trainees must successfully complete the Management Training Program. 

The franchisor also suggests that they attend the grand opening of another franchisee’s bakery before opening their own. If the franchisees operate a co-branded bakery, they must also complete the initial training program offered by the applicable co-branded franchisor, as outlined in the Franchise Disclosure Document. The franchisor may hold conferences, conventions, programs, webinars, teleconferences, or training sessions on any topic related to the system from time to time.

Cinnabon Franchise Operations

Cinnabon provides various operational supports to their franchises, such as initial management training and on-site Bakery visits, access to the corporate management team for business review and performance analysis, and inspections focusing on quality, service, and cleanliness. 

Franchise Marketing plan and assistance such as innovative, targeted Bakery and coffee shop franchise marketing plans, high-quality point-of-purchase, merchandising, and local store marketing materials, devoted marketing, and public relations staff to assist with marketing and media planning, seasonal and local store marketing campaigns, and an in-house creative agency to provide Franchise Partners with unique, customizable advertising and branding materials. Also provide a wide range of delectable menu options, and world-class menu variety through continuous testing, improved products, expanded offerings, operational support, and quality assurance. All other basic ongoing supports are also provided.

How is Cinnabon Franchise Territory Granted

The initial franchise term for full bakeries is 20 years, with the option to renew for an additional 20 years if renewal requirements are met. 

The Cinnabon initial term for express bakeries is five years, with the option to renew for another five years if renewal requirements are met. The initial franchise term for concession bakeries is five years, with no option for renewal.

Cinnabon franchise

What is Cinnabon Franchise Term of Agreement and Renewal?

The initial franchise term for full bakeries is 20 years, with the option to renew for an additional 20 years if renewal requirements are met. The initial franchise term for express bakeries is five years, with the option to renew for another five years if renewal requirements are met. The initial franchise term for concession bakeries is five years, with no option for renewal.

Does Cinnabon Franchise provide Financial Assistance?

The franchisor does not provide financing for trade fixtures, opening inventory, or anything else. The franchisor may refer franchisees to non-affiliated leasing or financing companies. Currently, the franchisee’s note, lease, or obligation will not be guaranteed by the franchisor for any lender or other person or entity. 

Cinnabon participates in the SBA’s Franchise Registry Program and may modify the Franchise Agreement as needed to meet SBA requirements for franchisees to participate in certain SBA loan programs.

Pros & Cons of Cinnabon Franchise

There are both pros and cons to owning a Cinnabon franchise. On the plus side, Cinnabon is a well-known and trusted brand, so customers are likely to flock to your store. Additionally, Cinnabon provides plenty of support to its franchisees, so you won’t be left on your own to run the business. 

However, there are also some negatives to consider. For one, Cinnabon franchises are expensive to buy – you’ll need to have a significant amount of capital to get started. Additionally, Cinnabon stores require a lot of space, so you’ll need to find a location that can accommodate the store.

First and foremost, owning a Cinnabon franchise can be a very lucrative business opportunity. In fact, the franchisor has reported that the average franchisee earns over $250,000 per year. 

Additionally, Cinnabon franchises are typically very well-run and operate with a high level of efficiency. This means that franchisees can often expect to see strong financial results from their investment in a Cinnabon.

Finally, Cinnabon franchises are known for their high-quality products and exceptional customer service. This makes Cinnabon a popular choice among customers.

Pros of owning a Cinnabon franchise 

1. Bakery franchise opportunities include single-unit, multi-unit, and co-branding.

2. A chance to work for a world-renowned brand

3. Bakery designs that are efficient and customizable in order to maximize return on investment

4. Access to a passionate and dedicated Franchise Support Team

5. GROWTH IN MULTI-CHANNELS

6. Best-in-class assistance at all stages of the real estate, design, and construction processes

7. International supply chain’s purchasing power to obtain preferential pricing.

8. Marketing and public relations professionals are on hand to assist you with local marketing and media.

Cons of owning a Cinnabon franchise 

1. Prior experience in a restaurant chain is required.

2. The franchise fee is variable.

3. The royalty and ad marketing royalty are also variable.

4. In the Express format franchises the franchise term is only 5 years.

Cinnabon franchise

How much do Cinnabon franchise owners make?

Cinnabon franchise owners make an average income of $103,000 per year. I will explain to you How much income do Cinnabon franchise owners earn?

As per their latest 2022 FDD, the average 2021 sales revenue (AUV) is $ 630,000 per annum. We can consider the Cinnabon average franchise profit in the range of 10 to 20% of gross sales.

What is Cinnabon franchise profit? 

We shall analyze the Cinnabon franchise profit and years to return of investment.

AUVEstimated Annual Profit (10%)Estimated Annual Profit (15%)Estimated Annual ProfitProfit (20%)
$ 630,000$ 63,000$ 94,500$ 126,000
Recoup $400,0006.34 years4.23 years3.17 years

The estimated Cinnabon franchise profit is $ 63,000 to $ 126,000 and it will take 3 to 6 years to recoup the investment.The top 10th percentile of franchise owners can recoup their investment within 3 years, whereas the average is more than 5 years.

I have considered a higher profit margin considering the full bakery and co-branding franchise formats, and higher than the mean franchise cost of $ 400,000.

Is the Cinnabon franchise Worth it?

We can gauge the franchise valuation of the Cinnabon franchise on basis of its profits and ROI also.

As estimated above, the average franchise owners take 5 years to recoup the investment. The valuation multiple of 5x of profits is seen.

Let us also see a few Cinnabon franchises for resale, found one at Bizquest.

.

The Cinnabon franchise for sale is asking a price of $125,000 for a mall kiosk. The cost of the new Cinnabon mall kiosk franchise will be upwards of $ 250,000 and can recoup the investment in 3 to 4 years, whereas the resale business establishes a recoup period of one year.

I recommend you consider the Cinnabon franchise for resale before buying a new franchise and also talk to existing franchise owners for reviews.

Cinnabon franchise reviews

Cinnabon is a world-renowned franchise that specializes in cinnamon rolls, coffee, and other sweet treats. In recent years, the Cinnabon franchise has been growing rapidly, and now operates in many countries.

Despite its widespread success, there are a number of Cinnabon franchise reviews online that offer a different perspective on the franchise. Some reviews are positive, while others are negative. Overall, most Cinnabon franchise reviews are positive, with reviewers citing the high quality of the food and desserts as the main reasons for their satisfaction.

Cinnabon franchise

Cinnabon Fitness Franchise Rankings

1. Entrepreneur magazine’s Franchise 500 ranked it first in its category.

2. Atlanta Business Chronicle ranks #6 among the top 25 Atlanta-based franchises.

3. CNN Travel ranked Golden Chains: 20 Best Franchises from Travelers.

4. Top 4 Restaurant Digital Marketing Tactics, according to Nation’s Restaurant News

Franchise Deck Analysis and Overview

All I can say about 1985 is that the company has grown significantly. Currently, the company operates over 1700 stores. The company provides It sells cinnamon rolls, as well as other baked goods and beverages. Franchised locations are located in high-traffic areas such as shopping malls, airports, train stations, travel plazas, entertainment centers, academic institutions, and military establishments. The company serves baked goods and specialty-blended beverages in over 55 countries. 

Bakery designs that are efficient and customizable in order to maximize return on investment Access to a passionate and dedicated Franchise Support Team. As the Cinnabon brand was promoted through various venues, the company focused on being diverse and flexible, with multiple options for franchisees. Cinnabon Bakeries typically generate a large portion of its revenue from the sale of coffee and other beverages. However, prior restaurant experience is required to obtain ownership of the company.

I recommend you to buy a franchise of Cinnabon with a savory brand from parent company-Focus brands. You can also go with Auntie Anne’s and Cinnabon together in high footfall destination zones like malls or cinemas.

The Franchise Deck rating for the Cinnabon franchise is 3.8 /5.0.

Cinnabon franchise

Conclusion 

Cinnabon franchise business is a well-established business in the United States. With comprehensive training and support from the FOCUS brand, this is a fantastic opportunity for investors to invest. The company has grown significantly in the market and, as a projection of the bakery industry, has a bright future. It is still advised to speak with other franchises as much as possible in order to understand the business and make a decision.

Entrepreneurs who want to open a franchise in the bakery and desserts  franchise opportunities categories can look at 

  1. Auntie Anne’s Franchise 
  2. Nothing bundt Cakes Franchise
  3. Crumbl Cookies Franchise
  4. Great American Cookies Franchise 
  5. Dunkin Donuts franchise 
  6. Tiger Sugar Franchise
  7. Krispy Creme Franchise

Frequently Asked Questions (FAQs)

  1. Is the Cinnabon franchise profitable?

Yes, the Cinnabon franchise is profitable.

  1. Can you make money owning a Cinnabon?

Yes, you can make money owning a Cinnabon.

  1. Is a Cinnabon a franchise?

Yes, Cinnabon is a franchise.

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