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Training Overview: Required trainees must attend and successfully complete to the franchisor’s satisfaction the management training program prior to the opening of the bakery. All individuals attending the management training program must be at least 18 years old and must have management experience as a restaurant owner and/or operator. All or certain portions of the management training program may, in the franchisor’s discretion, be conducted online or in person at (i) the franchisor’s corporate headquarters in Atlanta, Georgia, (ii) a bakery that the franchisor designates that has been certified as an authorized training facility, and/or (iii) other locations authorized by the franchisor. Currently, the classroom training is conducted through online modules and the on-the-job training is conducted at a certified training location. The franchisor also recommends that the primary contact or at least one of the managers attend the opening of another franchisee’s bakery before a franchisee opens their own bakery. For the franchisee’s first two bakeries (including bakeries owned by affiliates), the initial franchise fee includes the cost of the franchisor providing one or more representatives to provide onsite opening training and assistance (approximately seven days after the certificate of occupancy and health permit are obtained) to facilitate the opening of such bakeries. The franchisor may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or training sessions on any matters related to the system.
Territory Granted: The Franchise Agreement licenses franchisees to manufacture and sell approved products at retail only from the specific bakery location that the franchisor accepted. The franchisor does not grant franchisees any exclusive territory or other territorial rights under these agreements other than the right to sell approved products at retail from the bakery. However, if franchisees operate a co-branded bakery in a streetside location, while they will not receive an exclusive territory, they will receive a territory with limited protected rights.
Obligations and Restrictions: Franchisees are required to devote their best efforts to the proper and effective operation of the bakery. Franchisees (if they are an individual) and their owners (if they are an entity) are not required to participate in the actual operation of the bakery but may serve as the primary contact and/or a manager. However, the franchisor does not recommend an investment in a bakery for investors interested in an absentee management business. Franchisees may offer in the bakery to customers only the approved products that the franchisor has approved in writing. Franchisees must produce and sell all approved products it specifies, including all menu items and other products and services that the franchisor requires franchisees to sell, as stated in the manuals or otherwise, which are all part of the system.
Term of Agreement and Renewal: For full and express bakeries, the length of the initial franchise term is 20 years with an option to renew for an additional 20 years, if renewal requirements are met. For concession bakeries, the length of the initial franchise term is five years with no renewal option.
Financial Assistance: The franchisor does not offer financing for trade fixtures, opening inventory, or any other purpose. The franchisor may refer franchisees to leasing or financing companies not affiliated with it. Currently, the franchisor will not guarantee the franchisee’s note, lease, or obligation, for any lender, or any other person or entity.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $30,500 | $30,500 |
| Construction and Build Out Costs | $99,800 | $297,000 |
| Permitting | $2,400 | $7,900 |
| Equipment Package | $45,000 | $108,000 |
| Millwork | $20,000 | $40,000 |
| Menu Board, Graphics and Interior Signage | $2,000 | $12,000 |
| Exterior Signage | $2,300 | $15,000 |
| Computer System | $7,400 | $27,400 |
| Smallwares | $3,500 | $7,000 |
| Architect/ Engineer | $4,200 | $18,800 |
| Rent | $4,000 | $10,000 |
| Grand Opening Marketing | $2,500 | $7,500 |
| Legal and Accounting Fees | $5,000 | $10,000 |
| Insurance | $1,200 | $6,800 |
| Misc. Opening Costs/ Office Supplies | $1,800 | $6,800 |
| Security Deposits | $0 | $15,000 |
| Management Training Program Fee | $0 | $2,500 |
| Travel and Living Expenses During Training | $3,100 | $5,100 |
| On-Site Training Fee | $0 | $6,100 |
| Opening Inventory | $5,000 | $8,000 |
| Additional Funds (3 months) | $15,000 | $33,000 |
| ESTIMATED TOTAL* | $254,750 | $674,400 |
*The estimated initial investment range covers a full bakery in a traditional location. Please see FDD for details on other franchise types.
| Type of Fee | Amount |
| Royalty | For full bakeries, express bakeries (that are not in a Schlotzsky’s), concession bakeries, and co-branded bakeries: 6.0% of net sales. |
| Advertising Contribution | 2.5% or 3% of net sales. |
| Advertising Cooperative Contribution | An amount set by the franchisee’s advertising cooperative. |
| Local Marketing Obligation | Each calendar quarter, franchisees must spend not less than 1% of net sales on local market advertising. |
| Promotions | Costs to purchase, lease and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items and gift cards. The franchisor may charge franchisees its costs plus a reasonable administrative fee. |
| Insufficient Funds Fee | The franchisor’s out-of-pocket costs and an administrative fee. |
| Interest | The lesser of 1.5% per month or maximum legal interest rate. |
| Late Reporting Fee | Currently, $50 per week. |
| Taxes and Other Payments | The franchisor’s cost. |
| Subsequent Management Trainee Training Fee | Currently, $250 per trainee per day. |
| On-Site Training and Assistance | A reasonable fee, currently, $500 per trainer per day, plus their travel and living expenses. |
| Additional Support/ Consulting Fee | A reasonable fee, currently, $500 per representative per day, plus their travel and living expenses. |
| Conference/ Program Fee | A reasonable fee, which will vary by program. |
| Training Cancellation Fee | The franchisor’s out of pocket costs. |
| Learning Management System License Fee | The then-current fee. |
| Carvel Product Platform Training Fee | The franchisor may charge a reasonable fee up to $750. |
| Plan Review Fee | $1,000 per set of drawings. |
| Lease Renewal Fee/ Extension Assistance Fee | The then-current fee. |
| Lease Documentation Late Fee | $500 per month (or partial month) until delivered. |
| SRU Initial Setup and Rental Fees |
The above information has been compiled from the FDD of Cinnabon. Year of FDD: 2024.
NOTE: FDD pages are provided for informational purposes only. It is an overview of what is contained in the full document, which is to be given to the prospective franchisee by the franchise--and receipt of which must be formally notarized between the parties. If you are interested in getting in touch with a franchise company, please search our listings via the "Industry" pages accessible from the drop-down menu above.
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