Does the Cinnabon initial investment estimate include leasehold improvements for new free-standing buildings with a drive-thru?

According to Cinnabon's 2025 Franchise Disclosure Document, the estimated initial investment for a Cinnabon bakery does not include leasehold improvements for new free-standing buildings or new free-standing buildings with a drive-thru. The document specifies that the costs for this type of format may vary significantly. The construction and build out costs include fees paid to a general contractor to build out the bakery to meet Cinnabon's standards, including HVAC, electrical, carpentry, floor covering, and painting.

Costs for construction and build-out can fluctuate significantly based on factors such as the size and condition of the premises, the presence of existing leasehold improvements, the extent and quality of desired improvements beyond minimum requirements, landlord contributions, and local material and labor costs. The FDD notes that costs could be significantly higher in major metropolitan markets like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., due to local market rates for materials and labor.

For prospective Cinnabon franchisees, this means that if you are considering a new free-standing building with a drive-thru, you should anticipate that your initial investment could be substantially higher than the estimates provided for standard locations. It would be prudent to conduct thorough due diligence, obtain detailed construction bids, and consult with experienced contractors and real estate professionals to accurately assess the potential costs in your specific market. Understanding these potential variations is crucial for effective financial planning and decision-making.