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Franchise Picks
Cinnabon
 

Maker of the world’s most famous cinnamon rolls, Cinnabon Inc.® (Cinnabon) serves fresh, aromatic, oven-hot cinnamon rolls, as well as a variety of cupcakes and other baked goods and specialty beverages. Cinnabon currently operates more than 770 franchised locations worldwide, primarily in high traffic venues such as shopping malls, airports, train stations, travel plazas, entertainment venues, academic institutions, and military bases.

Franchisor Background

Year Established:

  1985

Franchising Since:

  1986

Operating Units:

Franchised Units:765 99.5%  
Company-Owned Units:4 0.5%  
 ______ _____  
Total Operating Units:769 100%  
 

Geographic Distribution:

U.S.:421 54.7% In 44 States
Canada:29 3.8% In 2 Canadian Provinces
International:319 41.5% In 29 Foreign Countries
 ______ _____  
Total:769 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    

Registered in Following Registration States:

  

Financial Requirements

Investment:

Minimum Net Worth:$300K
Cash Investment:$100K
Total Investment:$192-317K
Average Total Investment:$255K
 

Fees:

Initial Franchise Fee:$30K
Average Franchise Fee:$30K
On-Going Royalty:6%
Average Royalty:6%
Advertising Fee:3%

Average Number of Employees:

   6 Full-time, 0 Part-time

Space Needs (in square footage):

   600-700

Preferred Sites:

   Regional Mall

Other Sites:

   Airports, Travel Plazas/venues, Entertainment outl

Encourage Conversions?

   Yes

Earnings Claims Provided?

   Yes

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:Yes
Franchisee Association/Member:Yes, Member
Size of Corporate Staff:0
Site Selection Assistance?Yes
Lease Negotiation Assistance?Yes
Financial Assistance?N/A
 

Marketing Support:

Co-Op Advertising:Yes
National Advertising:No
Regional Advertising:No
Local Advertising:Yes
Marketing Materials:None Specified
Additional Services:None Specified
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Not Applicable
Central Purchasing:Not Applicable
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Not Applicable
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Included in Fees
 

Training:

1. CRT Location2 Weeks
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:5
General Business Experience:5
Specific Industry Experience:5
Formal Education:4
Psychological Profile:4
Personal Interview(s):5

Minority Representation

Units Owned by Minorities:

African-American:4
Asian-American:16
Hispanic:5
Native American:0
Other:16
Specific Minority:Franchise Fee Deferment, Franchise Fee Reduction, Financing Referrals, Lease Negotiations, Managerial Training, Mentoring, Growth Through Diversity

Terms of Contract

Term of Initial Contract:20 Year(s)
Term of Renewal Period:20 Year(s)
Passive Ownership:Not Allowed
Area Development Agreements?Yes, for 0 Year(s)
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?Yes

Expansion Plans

Projected New Units Over Next 12 months:

  
U.S.:Yes
Canada:Yes
Overseas:Yes
 
 
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