factual

Who bears the expense of purchasing, leasing, licensing, and installing the Computer System at a Cinnabon Bakery?

Cinnabon Franchise · 2025 FDD

Answer from 2025 FDD Document

Promotional Content and related media that we have approved.

Pricing

We may, if permitted by applicable law, establish maximum, minimum, or other pricing requirements with respect to the prices you may charge for Approved Products, including required participation in systemwide discount programs and promotions. If we do not establish such pricing requirements, then you will have the right to determine the prices you charge.

Computer and POS Systems

You must provide financial and business records and information to us according to reporting formats, methodologies and time schedules that we establish. As part of these record keeping requirements, you must install computerized Bakery management systems meeting our Standards, as modified in response to business, operations and marketing conditions. Accordingly, you must promptly purchase, lease and/or license and install at the Bakery, at your sole expense, the POS System, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that we require from time to time (collectively, the "Computer System"), all of which you must keep in good maintenance and repair. We estimate the total cost of the Computer System will be $10,500 to $32,000 for Full Bakeries, $3,000 to $16,400 for Express Bakeries (other than those in a Schlotzsky's), and $10,500 to $20,000 for Concession Bakeries, depending on the size of your Bakery, which includes installation and setup fees. For a Co-Branded Bakery, the Computer System that we require meets both our and the Co-Branded Franchisor's standards. You may incur additional expenses if you require additional equipment, training, or installation services. We may require you to purchase, license, or lease additional hardware or software.

The Computer System includes a POS System that we specify, the principal functions of which are to manage permanent financial records of sales transactions at your Bakery, cash control, inventory control, and menu and price change control, among other things. We will have independent electronic and manual access to certain information within the POS System and there are no contractual limitations on our right to access this information. We have developed interfaces with our preferred providers that facilitate this access. You must provide any assistance we require to integrate your POS System with our headquarters system at the earliest possible time and in the manner we prescribe. You must accurately, consistently, and completely record, structure, capture and provide all required information through your POS System in accordance with all applicable laws and protect such information as required.

To maintain a consistent reporting system, you must purchase or lease and use a POS System specified by us from a designated Approved Supplier. We estimate that the initial cost to you for the POS System and related necessary equipment, including installation and activation, currently ranges from $8,800 to $14,200 under the CapEx Program, depending on the number of terminals, travel costs, and other logistical factors. Under the CapEx Program, you must pay a monthly software license fee for the POS System that is currently $159 to $397 per month depending on your equipment configuration. If you choose to lease the POS System under the HaaS Program, you must pay a monthly software license and hardware lease fee for the POS System that is currently $216 to $442 per month depending on your equipment configuration and a one-time $300 activation fee.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–82)

What This Means (2025 FDD)

According to Cinnabon's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the expenses associated with the Computer System. This includes purchasing, leasing, and licensing the POS system, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high-speed internet access, and credit card processing equipment. Cinnabon requires franchisees to install computerized bakery management systems that meet their standards.

The estimated total cost of the Computer System varies depending on the type of Cinnabon bakery. For a Full Bakery, the cost is estimated to be between $10,500 and $32,000. For Express Bakeries (excluding those in a Schlotzsky's), the cost ranges from $3,000 to $16,400. Concession Bakeries can expect to pay between $10,500 and $20,000. These costs include installation and setup fees, but franchisees may incur additional expenses for extra equipment, training, or installation services. Cinnabon may also require franchisees to purchase, license, or lease additional hardware or software in the future.

Cinnabon also offers a CapEx Program and a HaaS Program for the POS system. Under the CapEx Program, the initial cost ranges from $8,800 to $14,200, with monthly software license fees of $159 to $397. The HaaS Program involves monthly fees of $216 to $442, plus a one-time $300 activation fee. Franchisees are also responsible for ongoing license, maintenance, and service fees associated with the POS System. Additionally, franchisees must purchase a dedicated tablet for the Learning Management System, with an annual license fee of $170 per year. Franchisees must also dedicate a high-speed broadband connection for the Computer System and may be required to use Cinnabon-approved internet service providers and maintain a minimum bandwidth.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.