To whom is the initial franchise fee paid when opening a Cinnabon franchise?
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 |
| Type of Expenditure | Amount of E | Expenditure | Method of | When Payments Are | To Whom Payment Will |
|---|---|---|---|---|---|
| Low | High | Payment | Due | Be Made | |
| Initial Franchise Fee 1 | $61,000 | $61,000 | Lump sum | At signing of Franchise Agreement | Us |
| Type of Expenditure | Amount of Expenditure | Method of Payment | When | To Whom Payment Will Be Made | |
|---|---|---|---|---|---|
| Low | High | Payments Are Due | |||
| Initial Franchise Fee1 | $5,500 | $5,500 | Lump sum | At signing of Franchise Agreement | Us |
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- Initial Franchise Fee. See Item 5. For Co-Branded Bakeries, the Initial Franchise Fee estimate includes both the Initial Franchise Fee paid to us ($30,500) and the initial franchise fee paid, as applicable, to Auntie Anne's under the Auntie Anne's® Franchise Agreement for the right to operate an Auntie Anne's® franchise ($35,500) or to Carvel under the Carvel® Franchise Agreement for the right to operate a Carvel® franchise ($30,500).
| Type of Expenditure | Amount of Expenditure | Method of Payment | When Payments Are Due | To Whom Payment Will Be Made | |
|---|---|---|---|---|---|
| Low | High | De Made | |||
| Initial Franchise Fee 1 | $5,500 | $5,500 | Lump sum |
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to the 2025 Cinnabon FDD, the initial franchise fee is paid to "Us", which refers to the franchisor. The amount of this fee varies depending on the type of Cinnabon franchise. For a Cinnabon Bakery in an Other Location, the initial franchise fee ranges from $5,500 to $5,500. For a full Cinnabon store, the initial franchise fee is $30,500. For a Co-Branded Bakery, the initial franchise fee is $61,000. For a Cinnabon truck, the initial franchise fee is $5,500. These fees are due at the signing of the Franchise Agreement and are typically non-refundable.
For franchisees considering a co-branded location with Auntie Anne's or Carvel, a portion of the initial franchise fee is paid to the respective co-brand franchisor. Specifically, for Co-Branded Bakeries, the initial franchise fee includes the $30,500 paid to Cinnabon and either $35,500 to Auntie Anne's or $30,500 to Carvel. This highlights the importance of understanding the specific financial obligations associated with different franchise models.
It is important to note that the initial franchise fee is just one component of the total initial investment required to open a Cinnabon franchise. Other significant costs include construction and build-out, equipment, and initial marketing expenses. Prospective franchisees should carefully review Item 7 of the FDD, which provides a detailed breakdown of all estimated initial investment costs.