Top 250 Franchise by Entrepreneur – Rank no.65 – Cinnabon – US
Products & Services: Cinnamon rolls, coffee & baked goods
Number of Locations: 1,073
Total Investment: $142.33K – 365.7K
Began Franchising: 1986
Since 1985, malls throughout the world have been filled with the scent of Cinnabon. Each bakery serves fresh and prepackaged cinnamon rolls, Pecanbons (cinnamon rolls topped with pecans and caramel frosting), coffees and other drinks.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $30,000
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: 20 years, renewable
Net Worth: $400,000
Liquid Cash Available: $120,000
|FINANCING TYPE||IN-HOUSE||THIRD PARTY|
How This Franchise Supports Franchisees
Franchise Ranking History
|Founded||Federal Way, Washington (1985)|
|Headquarters||Sandy Springs, Georgia, U.S.|
Cinnabon is a chain of American baked goods stores and kiosks, normally found in areas with high pedestrian traffic such as malls and airports. The company’s signature item is a large cinnamon roll. As of July 2009, over 750 Cinnabon bakeries were operating in more than 30 countries. Its headquarters are in Sandy Springs, Georgia. The company is owned by Focus Brands, an affiliate of private equity firm Roark Capital Group.
The first Cinnabon opened on December 4, 1985 in Federal Way, Washington (a suburb of Seattle) in Sea Tac Mall. This bakery began by serving only its Cinnabon Classic cinnamon roll. Cinnabon’s first franchise-operated store opened in August 1986 in Philadelphia. In 1991, the first Cinnabon store outside a mall was opened in Detroit Metropolitan Wayne County Airport. Cinnabon stores today can also be found in military bases, universities, rapid transit stations, casinos, and amusement parks.
Cinnabon was bought by AFC Enterprises, Inc. in 1998 for $65 million. In 2004, AFC Enterprises, Inc., sold Cinnabon for $30.3 million to FOCUS Brands, Inc., which is owned by the Atlanta-based private equity firm Roark Capital Group. The headquarters moved to Greater Atlanta in 1999.
Cinnabon has many international franchise operations, including in major cities of Pakistan (Karachi and Lahore), Cyprus, and its largest branch outside the United States andCanada is in Stars Centre in Cairo. The restaurant is noted for being the first U.S franchise to open in Libya after the ouster of Muammar Gaddafi in 2011.
- Cinnabon Classic – the original Cinnabon cinnamon roll.
- Minibon – a smaller version of the Cinnabon Classic (not available in some stores).
- Minibites or Cinnabites – bite-sized versions of the Cinnabon Classic sold in packs of four.
- Caramel Pecanbon – a classic cinnamon roll drizzled with caramel and topped with pecans.
- Pecanbon Bites – bite-sized version of the Pecanbon roll used with a daub of caramel.
- Chocobon – a classic cinnamon roll with chocolate sauce.
- CinnabonStix – sticks of baked Danish pastry dough covered in cinnamon and sugar, usually dipped in frosting.
- Churro – a baked churro with Makara cinnamon filling.
- CinnaPretzel – a soft pretzel made with cinnamon roll dough with a cinnamon roll in the bottom of the pretzel (select locations).
- Center of the Roll – the center of a classic cinnamon roll cut into bite-sized pieces and topped with cream cheese frosting.
- MochaLatta Chill – a beverage consisting of a blend of chocolate and coffee over ice.
- Chillatta – a frozen beverage. Available in Chocolate Mocha, Tropical Blast, Strawberry, Strawberry Banana.
- Lemonatta – a frozen beverage based on lemonade. Available in Lemon, Strawberry, and Raspberry.
- Raspberry Lemonade
CinnaPacks are pre-packaged boxes of cinnamon rolls for customers to take home. Cinnapacks are cooled down, but have heating instructions on the back of the package, with warming in a microwave suggested as preferable to warming in an oven.
- CarameLatta Chill
- Cupcakes – In 2010, Cinnabon added cupcakes to the menu.
Cinnabon says it uses Makara cinnamon from Indonesia.
Cinnabon’s buns are actually rolls, or rolled up dough. They are prepared in one of three ways, depending on the store operator’s preference:
1) Freezer-To-Oven, also known as FTO, where the rolls are made in a factory and sent to the stores frozen;
2) Prepared Dough, where the dough is received frozen, then is thawed and made into rolls on location; and
Customers can easily recognize the last two preparations, because the rolling process is in plain view if the rolls are made on-site.
Cinnastix initially come as Danish pastry sticks. A mixture of margarine and vanilla extract is brushed on, then the sticks are dipped in a cinnamon and sugar mixture, twisted, and placed on a pan to bake.
Cinnabon Classic: 890 Calories
Minibon Roll: 400 Calories
Caramel Pecanbon: 1,080 Calories
Center of The Roll-Classic: 750 Calories