To whom does a Cinnabon franchisee pay the initial franchise fee?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount of Expenditure | Method of Payment | When Payments Are Due | To Whom Payment Will Be Made | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise Fee1 | $30,500 | $30,500 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and | $70,000 | $300,000 | As incurred | As arranged | Contractors |
| Build Out Costs2 | |||||
| Permitting3 | $1,000 | $5,000 | As incurred | Before opening | Government agencies |
| Equipment Package4 | $45,000 | $90,000 | Lump sum | Before opening | Vendors |
| Millwork5 | $20,000 | $54,000 | As incurred | Before opening | Contractors |
| Signage7 | $3,000 | $10,000 | Lump sum | Before opening | Vendors |
| Menu Board, Gra |
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the initial franchise fee is paid to 'Us,' which refers to the franchisor. The amount of the initial franchise fee varies depending on the type of Cinnabon bakery a franchisee establishes.
For a standard Cinnabon bakery, the initial franchise fee is $30,500. For a smaller footprint Cinnabon, the initial franchise fee is $5,500. For a co-branded Cinnabon location, the initial franchise fee is $61,000. These fees are paid in a lump sum when the Franchise Agreement is signed.
It is important to note that for Co-Branded Bakeries, the $61,000 initial franchise fee includes both the fee paid to Cinnabon ($30,500) and a fee paid to either Auntie Anne's ($35,500) or Carvel ($30,500), depending on which brand is co-branded with Cinnabon. This fee structure reflects the agreements necessary to operate a dual-branded franchise location.