To whom will payments for Legal and Accounting Fees be made when opening a Cinnabon franchise?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| Truck Costs25 | $95,500 | $174,000 | As incurred | As arranged | Vendors |
| Permitting3 | $515 | $2,575 | As incurred | Before opening | Government agencies |
| Equipment | $26,500 | $37,200 | Lump sum | Before opening | Vendors |
| Package4 | |||||
| Computer System9 | $10,500 | $20,000 | As incurred | Before opening | Vendors |
| Architect/Engineer11 | $5,300 | $8,000 | As incurred | Before opening | Architect |
| Grand Opening | $3,000 | $7,500 | As incurred | Before opening | Vendors or Us |
| Marketing13 | |||||
| Type of | Amount of I | Expenditure | Method of | When | To Whem Dovment |
| Type of | 7. | Payments Are | To Whom Payment Will Be Made | ||
| Expenditure | Due | ||||
| Legal and | $2,500 | $5,000 | As incurred | Before opening | Lawyers and accountants |
| Accounting Fees 14 | |||||
| Insurance 15 | $1,250 | $6,800 | As incurred | Before opening | Insurance companies |
| Management | $0 | $3,000 | As incurred | Before opening | Us |
| Training Program | |||||
| Fee 18 | |||||
| Travel and Living | $3,600 | $5,700 | As incurred | Before opening | Airlines, hotels and restaurants |
| Expenses during | |||||
| Training 18 | |||||
| On-Site Training | $0 | $6,100 | As incurred | Before op |
Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, payments for legal and accounting fees are made to lawyers and accountants. These fees are incurred before opening the Cinnabon franchise. The estimated cost for these services varies depending on the type of location. For a Cinnabon location, the fees range from $2,500 to $5,000. For a different type of Cinnabon location, the legal and accounting fees are estimated to range from $5,000 to $10,000. For a smaller Cinnabon location, the legal and accounting fees are estimated to range from $1,000 to $2,500.
These fees cover costs associated with establishing the business, including attorney and accountant fees for reviewing the Disclosure Document and related agreements, entity formation, and lease negotiation. For Co-Branded Bakeries, the fees also cover the cost to review the Franchise Disclosure Document and related agreements for the Co-Branded Franchise.
Prospective franchisees should budget accordingly and ensure they engage qualified legal and accounting professionals to guide them through the franchise agreement and business setup process. Understanding these costs upfront helps in planning the initial investment required to start a Cinnabon franchise.