Is the cost of the Schlotzsky's restaurant included in the estimated initial investment for a Cinnabon Express Bakery?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| As incurred | Before opening | Vendors | | Additional Funds - 3 | $5,000 | $13,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Months 21 | | | | | | | Total Initial Investment 22, 23 | $69,850 | $188,350 | | | |
YOUR ESTIMATED INITIAL INVESTMENT: EXPRESS BAKERY IN A NEW SCHLOTZSKY'S RESTAURANT
This tables estimates your expenses if you open an Express Bakery in a new Schlotzsky's restaurant. These figures (i) do not include the cost of the Schlotzsky's restaurant that will be the Host Facility and (ii) only apply if the Express Bakery is being constructed simultaneously with the Schlotzsky's restaurant.
| Type of Expenditure | Amount of Expenditure | Method of Payment | When | To Whom Payment Will Be Made | |
|---|---|---|---|---|---|
| Low | Payments Are Due | ||||
| Initial Franchise Fee1 | $8,000 | $8,000 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and | $1,600 | $3,200 | As incurred | As arranged | Contractors |
| Build Out Costs2 | |||||
| Equipment | $9,600 | $12,200 | Lump sum | Before opening | Vendors |
| Package4 | |||||
| Exterior Signage8 | $0 | $6,400 | Lump sum | Before openi |
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the estimated initial investment for an Express Bakery located in a new Schlotzsky's restaurant does not include the cost of the Schlotzsky's restaurant itself. The FDD clearly states that the figures provided "do not include any of the costs relating to the investment required for the Schlotzsky's restaurant." This means a prospective Cinnabon franchisee should not expect the initial investment figures for the Express Bakery to cover any expenses associated with establishing or operating the Schlotzsky's restaurant.
This exclusion is significant because the Schlotzsky's restaurant acts as the "Host Facility" for the Cinnabon Express Bakery. The FDD notes that many costs typically associated with developing an Express Bakery, such as permitting, insurance, leasehold improvements, and computer systems, will be incurred when constructing and operating the Schlotzsky's restaurant. These costs are not included in the Express Bakery's initial investment estimates.
For a prospective franchisee, this means carefully distinguishing between the costs of setting up the Cinnabon Express Bakery and the costs of the Schlotzsky's restaurant. If the Schlotzsky's restaurant is already constructed and open, the franchisee should refer to a different table in the FDD titled "EXPRESS BAKERY (EXCLUDING BAKERIES IN NEW SCHLOTZSKY'S RESTAURANTS)" for a more relevant estimate. It is crucial to understand that the initial investment for the Cinnabon Express Bakery is contingent on the presence and operation of the Schlotzsky's restaurant, and the costs are not interchangeable.