Does the estimated initial investment for a Cinnabon Express Bakery apply if the bakery is not constructed simultaneously with the Schlotzsky's restaurant?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
There may be variations in the cost of leasehold improvements, utilities and other requirements to prepare the space for any Express Bakery, depending on the requirements and negotiated terms with the landlord and the location. We do not provide estimates on the variations in these costs.
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- Express Bakeries in New Schlotzsky's Restaurants. The range of estimated costs relates to when an Express Bakery is being built in connection with the construction of a
Schlotzsky's restaurant. As a result, many of the costs associated with developing an Express Bakery will be incurred when constructing and beginning to operate the Schlotzsky's restaurant (e.g., permitting, insurance, construction of leasehold improvements, computer systems, equipment, etc.) and are not included in this table.
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the estimated initial investment for an Express Bakery located in a new Schlotzsky's restaurant applies only if the Express Bakery is constructed simultaneously with the Schlotzsky's restaurant. If the Cinnabon Express Bakery is built in an already-constructed and open Schlotzsky's restaurant, a different set of figures should be reviewed.
Specifically, if you are building an Express Bakery that will be located in an already-constructed and open Schlotzsky's restaurant, you should refer to the table titled "EXPRESS BAKERY (EXCLUDING BAKERIES IN NEW SCHLOTZKY'S RESTAURANTS)". This distinction is important because the costs associated with developing an Express Bakery are often incurred during the construction and initial operation of the Schlotzsky's restaurant itself, such as permitting, insurance, leasehold improvements, and equipment. These costs are not included in the initial investment table for Express Bakeries built simultaneously with a new Schlotzsky's.
Therefore, a prospective Cinnabon franchisee needs to carefully identify whether the Express Bakery will be constructed alongside a new Schlotzsky's or within an existing one to determine which set of estimated costs is applicable. This will significantly impact the overall initial investment required. The FDD also notes that Cinnabon typically only approves Express Bakeries outside of new Schlotzsky's restaurants in unusual circumstances, so a franchisee should also clarify the conditions under which such a location would be approved and how that might affect costs.