What expenses are included in the 'Additional Funds 3 Months' estimate for a Cinnabon Bakery?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional Funds 3 Months.
This estimates the additional funds you may need to cover expenses you will incur before your Bakery opens and in its first three months of operation.
These expenses may include, without limitation, employee salaries, wages, and benefits, payroll taxes (including payroll to cover the pre-opening training period for your staff), Royalty Fees, Advertising Contributions, ongoing fees due to the Co-Branded Franchisor (if you operate a Co-Branded Bakery), additional advertising expenses, additional inventory, miscellaneous supplies and equipment, rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items.
We have based these figures on our experience franchising Bakeries and our affiliate's experience opening and operating Bakeries.
You may incur other categories of expenses or expenses in excess of this estimate.
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the 'Additional Funds 3 Months' estimate covers expenses incurred before the bakery opens and during its initial three months of operation. These funds are intended to cover a variety of costs necessary to establish and sustain the business during its early stages.
Specifically, the estimate may include employee salaries, wages, and benefits, as well as payroll taxes. It also accounts for ongoing expenses such as Royalty Fees, Advertising Contributions, and any fees due to a Co-Branded Franchisor if applicable. Franchisees should also budget for additional advertising expenses, inventory, and miscellaneous supplies and equipment.
Furthermore, the 'Additional Funds' cover essential operational costs like rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items. Cinnabon bases these figures on their experience and their affiliate's experience in franchising and operating bakeries. However, the document cautions that franchisees may incur other categories of expenses or expenses exceeding this estimate, so it's important to plan accordingly.