What is assumed about tenant improvement allowances for the high estimate of Construction and Build Out Costs for a Cinnabon Bakery?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
does not include leasehold improvements for new free-standing buildings or new free-standing buildings with a drive-thru, as the costs for this format may vary significantly. For Co-Branded Bakeries (other than a Swirl Bakery), the estimate is based on mall and streetside locations. The Swirl Bakery estimate is based on streetside locations.
You may be able to negotiate tenant improvement allowances from your landlord. T
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the high estimate for Construction and Build Out Costs assumes that no tenant improvement allowance is available. Tenant improvement allowances are financial incentives landlords may offer to tenants to offset the costs of modifying or improving a leased space.
For prospective Cinnabon franchisees, this means that the higher end of the estimated construction costs reflects a scenario where the landlord provides no financial assistance for build-out expenses. This could significantly increase the initial investment required to open a Cinnabon bakery. Franchisees should be prepared to cover all construction and build-out costs themselves if a tenant improvement allowance cannot be negotiated.
In contrast, the low estimate for construction and build out costs assumes a $30,000 tenant improvement allowance. Therefore, it is important for prospective franchisees to carefully consider their ability to negotiate favorable lease terms with landlords, as this can have a substantial impact on their initial investment.