Cinnabon operate quick-service bakeries that sell their world famous fresh-baked cinnamon rolls, plus a range of other cakes and pastries and beverages.
Launched in Seattle, Washington in 1985, Cinnabon are now headquartered in Atlanta, Georgia. They have offered franchise opportunities since 1986. Cinnabon claims to be the world’s largest seller of cinnamon flavoured pastries. They rank #49 in the list of world’s biggest fast food retailers, behind other global bakeries. At the end of 2023 the company had 22 outlets across the UK. They operate in 57 countries worldwide.
Cinnabon at a glance:
You’ll need a minimum net worth of £300k, liquid cash of £120k and be prepared to spend close to £700k to get a full Cinnabon bakery off the ground. (Although you may start a simpler Express Cinnabon location for as little as £60,000). The company prefers franchisees who have previous experience in running a business or hospitality and they say they’re seeking franchise-owners who are ‘people orientated’, (which means you genuinely care about your customers and your team). Although franchisees are not required to manage the daily operations of their store, Cinnabon does not recommend this opportunity for candidates seeking a remote investment.
Cinnabon offer six types of franchise and they each come with different set-up costs. Franchisees can expect to spend anywhere from £255,000 to £657,000 to open a ‘full bakery’ location – which ranks as moderate to high.
Types of Cinnabon franchise:
The initial franchise fee is £30,500 for a full bakery. Military veterans may be eligible for a £10,500 discount off this fee.
After opening, you are required to pay an array of ongoing fees and charges. They include:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | £30,500 | £30,500 |
| Construction and build out costs | £100,000 | £300,000 |
| Permits | £2,400 | £7,900 |
| Equipment package | £45,000 | £108,000 |
| Millwork | £20,000 | £40,000 |
| Menu board, graphics, interior signage | £2,000 | £13,000 |
| 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 |
| Security deposits | £0 | £15,000 |
| Insurance | £1,200 | £6,800 |
| Opening inventory | £5,000 | £8,000 |
| Travel and living expenses during training | £3,100 | £5,100 |
| Additional costs – first three months | £15,000 | £33,000 |
Yes. Cinnabon say that gross revenues (full bakery in an enclosed mall) average £720,000 per year. Other sources say average revenues (full bakery) are £637,000 per year. Allowing for a 15% margin on these figures, Cinnabon franchise owners may collect net profits of £108,000 or £95,000 per year. This ranks as good and is above the average UK franchise owner income (all franchises) of £60k per year.
The failure rate for a Cinnabon franchise is 4% in year one, rising to 15% by year three. This ranks as moderate to high.
Franchisees may manufacture and sell approved products at retail only from the specific bakery location that Cinnabon has accepted. The company does not grant franchisees any exclusive territory or other territorial rights 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.
Cinnabon support for franchisees includes:
Depending on the type of Cinnabon franchise you select, you can get into this franchise for little money, although starting a full-blown bakery could be significantly more expensive. Overall, you gain the backing of a global brand, a much-loved product range, and the potential for good profits. The only downsides are the lack of a passive investment opportunity and a high failure rate – one in seven Cinnabon franchises do not make it past year three.
It begins with an application. Start the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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