What do the Construction and Build Out Costs for a Cinnabon Bakery include?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
includes both the Initial Franchise Fee paid to us ($30,500) and the initial franchise fee paid, as applicable, to Auntie Anne's under the Auntie Anne's® Franchise Agreement for the right to operate an Auntie Anne's® franchise ($35,500) or to Carvel under the Carvel® Franchise Agreement for the right to operate a Carvel® franchise ($30,500).
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- Construction and Build Out Costs. This estimate includes fees paid to a general contractor you engage to build out the Bakery to meet our Standards (and for a Co-Branded Bakery, the standards of the Co-Branded Franchisor too). Leasehold improvements include but are not limited to HVAC, electrical, carpentry, floor covering, and painting. The cost of a general contractor will vary widely depending on the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements you desire over and above our minimum requirements, your landlord's cash contribution to the cost of the improvements, and the local costs of material and labor. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor. This estimate 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. The estimate is presented net of estimated tenant improvement allowances. For the low estimate, we estimated a tenant improvement allowance of $30,000, which is approximately the average tenant improvement allowance that our franchisees have reported to us. For the high estimate, we assumed that a tenant improvement allowance was not available.
For Full Bakeries located in a Non-Traditional location and Express Bakeries, the Construction and Build Out Cost category includes all millwork, menu boards, and interior signage.
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- Permitting. This estimate includes the cost of acquiring construction permits, including permit fees. Your costs will vary depending upon your Bakery's location.
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the Construction and Build Out Costs for a Cinnabon Bakery encompass various elements necessary to prepare the location to meet Cinnabon's standards. These costs primarily cover fees paid to a general contractor responsible for building out the bakery. This includes leasehold improvements such as HVAC, electrical work, carpentry, floor covering, and painting. However, it's important to note that these estimates do not include leasehold improvements for new free-standing buildings or those with a drive-thru. The estimates for Co-Branded Bakeries are based on mall and streetside locations, while the Swirl Bakery estimate is based on streetside locations.
Prospective Cinnabon franchisees should be aware that the cost of a general contractor can vary significantly based on several factors. These include the size and condition of the premises, the presence of existing leasehold improvements, the extent and quality of desired improvements beyond the minimum requirements, any cash contributions from the landlord towards improvement costs, and the local costs of materials and labor. In major metropolitan markets like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be substantially higher due to local market rates for materials and labor.
For Full Bakeries in Non-Traditional locations and Express Bakeries, the Construction and Build Out Cost category specifically includes all millwork, menu boards, and interior signage. Additionally, the costs associated with acquiring construction permits, including permit fees, are included in the estimate. However, these permitting costs can vary depending on the bakery's location, and in some markets, they may significantly exceed the provided estimates. Therefore, franchisees need to conduct thorough due diligence to understand the potential construction and build-out costs specific to their chosen location.
In addition to construction and build out costs, franchisees will incur expenses for millwork, which may include the cost of purchasing cabinets and counters from Approved Suppliers and installing them in the Bakery. They must also purchase from Approved Suppliers furniture that meets Cinnabon's Standards, such as tables, chairs, and office furniture. Franchisees must also purchase exterior signage from Approved Suppliers, and the cost of the exterior sign will vary depending on the size, color, quantity and backlit channel letters of the sign and other specifications as Cinnabon requires.