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 2023 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 2023 FDD

Section III – Number of franchised and company-owned Cinnabon outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 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 2023 FDD, including information on the:

• fiscal year 2022 average, median, lowest, and highest net sales, by quartile, for the 188 Cinnabon enclosed mall franchises that were eligible franchises in fiscal year 2022 (an “eligible franchise” is a franchise that reported sales in all 52 weeks of fiscal year 2022 and was owned by the same owner throughout fiscal year 2022)

• fiscal year 2022 average, median, lowest, and highest net sales, by quartile, for the 215 Cinnabon convenience franchises that were eligible franchises in fiscal year 2022

• fiscal year 2022 average, median, lowest, and highest net sales, by quartile, for the 54 Cinnabon-Auntie Anne’s co-branded franchises that were eligible franchises in fiscal year 2022

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

Section I – Cinnabon Franchise Costs

• Cinnabon (full bakery located in a traditional location) franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $30,500
• Construction and Build Out Costs:  $97,000 to $262,000
• Permitting:  $500 to $1,000
• Equipment Package:  $25,000 to $109,000
• Millwork:  $20,000 to $42,000
• Menu Board, Graphics, and Interior Signage:  $3,900 to $13,500
• Exterior Signage:  $2,500 to $15,000
• Computer System:  $6,000 to $24,000
• Smallwares:  $2,500 to $5,000
• Architect/Engineer:  $6,500 to $12,000
• Rent:  $4,000 to $10,000
• Grand Opening Marketing:  $2,500 to $7,500
• Legal and Accounting Fees:  $5,000 to $10,000
• Insurance:  $1,200 to $6,600
• Miscellaneous Opening Costs/Office Supplies:  $1,800 to $6,800
• Security Deposits:  $0 to $15,000
• Training and Support Fees:  $0 to $3,500
• Travel and Living Expenses During Training:  $3,500 to $7,500
• Opening Inventory:  $5,000 to $8,000
• Additional Funds for 3 Months:  $15,000 to $30,000
• Total Estimated Cinnabon Franchise Costs:  $232,400 to $621,400

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

• Cinnabon’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $5,500 to $30,500
• Royalty Fee:  all Bakeries other than Express Bakeries in a Schlotzsky’s: 6% of Net Sales; Express Bakeries in a Schlotzsky’s: then-current product price per case
• Advertising Contribution:  Bakeries in Other Locations: through 12/31/23: 1.5% of Net Sales; beginning 1/1/24: 2.5% of Net Sales; 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

2020

• Outlets at the Start of the Year:  932
• Outlets at the End of the Year:  935
• Net Change:  +3

2021

• Outlets at the Start of the Year:  935
• Outlets at the End of the Year:  938
• Net Change:  +3

2022

• Outlets at the Start of the Year:  938
• Outlets at the End of the Year:  950
• Net Change:  +12

Company-Owned

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  2
• Net Change:  +1

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

Section IV – News Updates on the Cinnabon Franchise

• Cinnabon Celebrates National Cinnamon Roll Day With BOGO Offer and Limited-Time Ice Cream Flavor With Carvel

• Focus Brands Reports Record System-Wide Sales During Fiscal Year 2022

• A Frosty Winter: Cinnabon Introduces New Take-Home Chocolate Frosting Pints and Brings Back Signature Cream Cheese Option

• Cinnabon and Auntie Anne’s Step Out of the Mall Together

• Cinnabon Ranked No. 49 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Cinnabon Franchise (Item 19, 2023 FDD)

• This Item 19 presents information about the financial performance during Fiscal Year 2022 (the fiscal year ended December 25, 2022) of certain Enclosed Mall Franchises, Convenience Franchises, and Auntie Anne’s Co-Branded Franchises that were eligible franchises in Fiscal Year 2022.

• 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 52 weeks of Fiscal Year 2022 and was owned by the same owner throughout Fiscal Year 2022.

• 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 Bakeries (other than the Auntie Anne’s Co-Branded Franchises represented in Part 3); (v) affiliate-owned Bakeries; and (vi) Full Bakeries that were not eligible franchises in Fiscal Year 2022.

• 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 2022

Top Quartile

• Average Net Sales:  $1,141,293
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  14/47 (30%)
• Median Net Sales:  $1,077,711
• Lowest Net Sales:  $858,376
• Highest Net Sales:  $2,572,786

2nd Quartile

• Average Net Sales:  $749,351
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  23/47 (49%)
• Median Net Sales:  $746,444
• Lowest Net Sales:  $661,048
• Highest Net Sales:  $846,453

3rd Quartile

• Average Net Sales:  $559,836
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  24/47 (51%)
• Median Net Sales:  $561,799
• Lowest Net Sales:  $470,834
• Highest Net Sales:  $660,793

Bottom Quartile

• Average Net Sales:  $347,860
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  25/47 (53%)
• Median Net Sales:  $349,065
• Lowest Net Sales:  $155,933
• Highest Net Sales:  $468,504

Total

• Average Net Sales:  $699,585
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  83/188 (44%)
• Median Net Sales:  $660,921
• Lowest Net Sales:  $155,933
• Highest Net Sales:  $2,572,786

• As of December 25, 2022, there were 218 Enclosed Mall Franchises. Of those 218 locations, 188 (86.2%) Enclosed Mall Franchises are represented in this table.

• This table does not include (i) 18 Enclosed Mall Franchises that are Co-Branded Franchises (other than any Auntie Anne’s Co-Branded Franchises represented in Part 3), (ii) seven Enclosed Mall Franchises that did not report sales in all 52 weeks of Fiscal Year 2022, and (iii) five Enclosed Mall Franchises that opened during Fiscal Year 2022.

• This table also does not include five Enclosed Mall Franchises that permanently closed during Fiscal Year 2022, 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 2022.

Part 2 – Average Net Sales by Quartiles – Convenience Franchises for Fiscal Year 2022

Top Quartile

• Average Net Sales:  $293,084
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  16/54 (30%)
• Median Net Sales:  $272,359
• Lowest Net Sales:  $203,169
• Highest Net Sales:  $595,524

2nd Quartile

• Average Net Sales:  $176,110
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  29/54 (54%)
• Median Net Sales:  $180,417
• Lowest Net Sales:  $149,301
• Highest Net Sales:  $202,288

3rd Quartile

• Average Net Sales:  $129,517
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  24/53 (45%)
• Median Net Sales:  $127,253
• Lowest Net Sales:  $113,607
• Highest Net Sales:  $149,144

Bottom Quartile

• Average Net Sales:  $76,741
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  30/54 (56%)
• Median Net Sales:  $80,831
• Lowest Net Sales:  $22,422
• Highest Net Sales:  $111,071

Total

• Average Net Sales:  $169,046
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  89/215 (41%)
• Median Net Sales:  $149,301
• Lowest Net Sales:  $22,422
• Highest Net Sales:  $595,524

• As of December 25, 2022, there were 270 Convenience Franchises. Of those 270 locations, 215 (79.6%) Convenience Franchises are represented in this table.

• This table does not include (i) 25 Convenience Franchises that are Co-Branded Franchises, (ii) 18 Convenience Franchises that were temporarily not operating during all or a portion of Fiscal Year 2022, and (iii) 12 Convenience Franchises that opened during Fiscal Year 2022.

• This table also does not include 15 Convenience Franchises that permanently closed during Fiscal Year 2022, all of which had been open for at least 12 months prior to closing. No Convenience Franchises were reacquired by Cinnabon in Fiscal Year 2022.

Part 3 – Average Net Sales by Quartiles – Auntie Anne’s Co-Branded Franchises for Fiscal Year 2022

Top Quartile

• Average Net Sales:  $1,601,107
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  6/14 (43%)
• Median Net Sales:  $1,440,290
• Lowest Net Sales:  $1,243,182
• Highest Net Sales:  $2,494,084

2nd Quartile

• Average Net Sales:  $1,105,013
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  6/13 (46%)
• Median Net Sales:  $1,098,236
• Lowest Net Sales:  $1,009,663
• Highest Net Sales:  $1,216,699

3rd Quartile

• Average Net Sales:  $870,433
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  7/13 (54%)
• Median Net Sales:  $896,613
• Lowest Net Sales:  $736,912
• Highest Net Sales:  $996,688

Bottom Quartile

• Average Net Sales:  $504,641
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  7/14 (50%)
• Median Net Sales:  $520,505
• Lowest Net Sales:  $190,125
• Highest Net Sales:  $729,995

Total

• Average Net Sales:  $1,021,505
• Number and Percentage of Bakeries Attending or Exceeding Average Net Sales:  26/54 (48%)
• Median Net Sales:  $1,003,175
• Lowest Net Sales:  $190,125
• Highest Net Sales:  $2,494,084

• As of December 25, 2022, there were 60 Auntie Anne’s Co-Branded Franchises. Of those 60 locations, 54 (90%) Auntie Anne’s Co-Branded Franchises are represented in this table.

• This table does not include (i) three Auntie Anne’s Co-Branded Franchises that did not report sales in all 52 weeks of Fiscal Year 2022, and (ii) three Auntie Anne’s Co-Branded Franchises that opened during Fiscal Year 2022.

• No Auntie Anne’s Co-Branded Franchises were reacquired by Cinnabon or permanently closed during Fiscal Year 2022.

• 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) ⬇️