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Cinnabon

Baked treats and speciality drinks from a widely recognised American brand

£139,200

Cinnabon In Brief

  • Business Type

    Food & Drink, Fast Food, Retail

  • Investment Level

    £ 139,200

About Cinnabon

Cinnabon is a well-established baked goods business and one of the most recognised and loved brands in the snack industry to be widely found in shopping malls, airport terminals and entertainment centres across the USA.

By using only the highest-quality ingredients, Cinnabon delivers a handmade, fresh-baked experience that has its customers returning again and again. As Cinnabon’s catchphrase states: ‘Because Life Needs Frosting’.

The Cinnabon menu includes the classic frosted roll, BonBites bite-sized rolls, Caramel Pecan cinnamon rolls, Cinnasweeties bite-sized doughnuts, and churro-style Cinnabon Stix.

The tempting aroma and cinnamon-sweet flavour reminds customers of the old traditional bakery, with goods baked freshly right in front of the customer and served hot from the oven.

Who is behind the Cinnabon franchise?

The company grew out of a desire to create the world’s finest cinnamon roll. Rich Komen and Ray Lindstromof, the owner and CEO of the Seattle-based Restaurants Unlimited chain, bought in local baker and restaurant-owner Jerilyn Brusseau to perfect the recipe.

Cinnabon was launched in December 1985 in a Washington mall after Komen’s plans to open a franchise of another cinnamon bakery fell through. Komen wanted the rolls to be cooked quickly and be worthy of the $1.25 price-tag, but the real breakthrough came when they identified the cinnamon that was to be used: korintje cinnamon from West Sumatra.

The roll was a success and Komen’s son, Greg, opened six more stores the following year. Bonbons and other treats have been added to the menu over the years, and the company grew rapidly into an international franchisor with 1,300 outlets in 52 countries. Cinnabon is now co-owned by Focus Brands and has its headquarters in Sandy Springs, Georgia.

The Cinnabon franchise network has been recognised widely, among the accolades it has been awarded include being ranked #1 in category in Entrepreneur magazine’s Franchise 500, 2014-2016, ranked in Nation’s Restaurant News’‘Restaurant Digital Marketing Tactics’, and in CNN Travel‘s ‘20 Best Franchises for Travelers’ 2014.

 

How does the Cinnabon franchise model work?

Behind the handmade products is the strength of the world-class Cinnabon franchise system, built by a team of experts to help drive consumers to the Cinnabon bakeries.

The American franchise begins with an initial $30,000 franchise fee. The business will also require $40,000-85,000 for equipment, and $75,000-150,000 construction costs for refitting a property. The total investment is between $181,050 and $325,500.

The premises are in protected territories, although the area of protection depends on the type and location of the bakery franchise that is being opened.

There is an ongoing royalty fee of 6 per cent of net sales and an advertising fee of between 1.5 per cent and 3 per cent of net sales advertising fee.

In the UK, a Cinnabon franchise will involve an initial investment of £23,000 and a total investment of £139,200.

Cinnabon is currently seeking qualified candidates to open both single and multi-unit bakery franchises.

Cinnabon also offers a range of branded clothing, including a baby onesie, fleece pyjama pants, jogging pants, a baking apron, sweatshirts, t-shirts, maternity t-shirt, tank tops and diner mugs.

 

What support and training does a Cinnabon franchisee receive?

While Cinnabon prefers to have franchisees who have previous experience, this is not a compulsory condition.

Franchisee candidates without sufficient restaurant experience will be required to successfully complete a three-day internship programme — an unpaid evaluation where candidates will receive hands-on bakery franchise training.

The American-based franchisees will be offered training at the company’s Atlanta headquarters.

The company provides intensive classroom instruction, online access to training tools, including management development, in-depth operations manual, and detailed job aids for all products.

Cinnabon’s franchise support team will provide franchisees with personal visits, conduct inspections and help them improve their service. Its assistance also includes access to Cinnabon’s corporate management team for business review and performance analysis. Cinnabon will help would-be franchisees come up with an innovative and targeted marketing plan to ensure the success of their Cinnabon business. Moreover, Cinnabon’s team will help franchisees select, negotiate and finalise the lease of their selected location.

 

Are there financing opportunities for a Cinnabon franchise?

Cinnabon is registered with the US Small Business Administration Franchise Registry which can expedite loan processes for franchisees.

 

What style of premises does Cinnabon offer franchisees?

The franchise can be either a store or a kiosk. ‘In-line’ stores can be found in malls, travel venues, military bases, co-branded locations and other high-traffic and captive audience venues. These bakeries feature a new design and presentation that has received great reviews from Cinnabon’s guests.

Cinnabon also offers a kiosk franchise for areas that have a smaller footprint or different requirements.

Cinnabon also offers a ‘Cinnabon Express Bakery’ franchise where the franchisee produces and sells selected Cinnabon products.

 

What international opportunities are there for a Cinnabon franchise?

Cinnabon has said that it aspires to become a global player in the snack industry. The brand has become a common fixture in shopping centres throughout the world and Cinnabon strives for diversity and flexibility as the brand is committed to making its customers happy and its outlets successful. Ultimately, their goal is to be the best in their class.

Cinnabon is seeking established companies that have a successful track record in food service or retail operations in the market that they wish to develop, that have an existing infrastructure that can be leveraged for future growth.

With almost 30 years of international experience in more than 50 countries, Cinnabon knows that the aroma, quality and freshness of its products will continue to lure our guests from all over the globe.

 

What are the Cinnabon franchise’s terms of agreement and renewal?

For full bakeries, the initial franchise term is 20 years, with an option to renew for an additional 20 years if renewal requirements are met.

An Express Bakery can be purchased for an initial five-year term with an opportunity to renew for a further five years if renewal requirements are met.

 

Are bakeries - like the ones Cinnabon operates - currently in demand?

As a mall food court mainstay, Cinnabon has noticed declining footfall, but has found ways to adapt to the modern market. The brand has moved heavily into licensing products, ranging from Pillsbury Cinnamon Rolls to Pinnacle Cinnabon Vodka, and introduced a delivery service, allowing Cinnabon to reach customers at home.

Cinnabon is still aiming to expand internationally — around half of its franchises are outside North America — with China a particular target in recent years.

 

How can I get started on setting up my own Cinnabon bakery?

The first step to a Cinnabon bakery is to fill out a consideration form. To find out more, or to request further information on franchising with Cinnabon, click on the ‘Send Enquiry’ button now.

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