What is the high-end estimate for the Security Deposits required when opening a Cinnabon, and to whom are these payments made?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
em 9 | $10,500 | $32,000 | As incurred | Before opening | Vendors | | Smallwares 10 | $3,000 | $12,000 | As incurred | Before opening | Vendors | | Architect/Engineer 11 | $8,500 | $27,000 | As incurred | Before opening | Architect | | Rent 12 | $2,000 | $10,000 | Monthly | As arranged | Lessors |
| Type of Expenditure | Amount of E | Expenditure | Method of | When Payments Are | To Whom Payment Will |
|---|---|---|---|---|---|
| Type or Emperiorities | Low High | Payment | Due | Be Made | |
| Grand Opening | $6,000 | $25,000 | As incurred | Before opening | Vendors or |
| Marketing 13 | Us | ||||
| Legal and Accounting Fees 14 | $7,000 | $12,000 | As incurred | Before opening | Lawyers and accountants |
| Insurance 15 | $1,575 | $8,200 | As incurred | Before opening | Insurance companies |
| Misc. Opening | $13,000 | $25,000 | As incurred | Before opening | Vendors |
| Costs/Office | |||||
| Supplies 16 | |||||
| Security Deposits 17 | $0 | $15,000 | As incurred | As incurred | Utility companies; lessors |
| Management Training | $0 | $4,000 | As incurred | Before opening | Us |
| Program Fee 18 | |||||
| Travel and Living | $4,600 | $6,900 | As incurred | Before opening | Airlines, |
| Expenses during | hotels and | ||||
| Training 18 | restaurants | ||||
| On-Site Training | $0 | $12,200 | As incurred | Before opening | Us |
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 high-end for security deposits is $15,000. These security deposits are paid to utility companies and lessors.
The security deposit costs cover expenses to obtain utility services such as telephone, gas, electricity, and water. The actual amount can vary significantly based on municipality requirements, local provider policies, and the franchisee's creditworthiness. These deposits are generally refundable, depending on the provider's policies.
It is important to note that this estimate does not include any security deposit under any lease for the Cinnabon bakery location itself. Franchisees should budget accordingly and confirm deposit requirements with local utility providers and lessors to avoid underestimating their initial investment.