What is the range for the estimated total initial investment for a Cinnabon Carvel co-branded bakery?

YOUR ESTIMATED INITIAL INVESTMENT: CARVEL CO-BRANDED BAKERY 26

Your costs will vary depending upon the location of the Bakery, its condition, and the need for additional designs, plans, and drawings, if applicable.

1. Rent. The figures in the table reflect our estimates for leasing the Bakery premises and include only one month of rent.

The typical location for a Full Bakery is in a high-traffic or retail mall area. An in-line location for a Full Bakery typically ranges in size from 650 to 900 square feet and has about 12 seats and three to six tables. A kiosk location for a Full Bakery typically is 250 to 400 square feet and does not include any seating. A typical Auntie Anne's Co-Branded Bakery occupies about 1,600 square feet of space. A typical Carvel Co-Branded Bakery or Swirl Bakery occupies about 1,800 square feet of space.

Express Bakeries typically range in size from 80 to 100 square feet and will most likely be developed as a co-brand within the space of a Host Facility, but, in limited circumstances, may be located in another facility that we approve. The rental costs are typically incurred in connection with locating and leasing the site for the Schlotzsky's restaurant or Host Facility and are not a separate expense. Express Bakery seating will vary depending on space availability. No counter seating is designed into a typical Express Bakery. If you are developing an Express Bakery, a remote storage and production facility of about 100 to 300 square feet may be required depending on the size and location of your Bakery.

Your rent will depend on the site's size, condition, visibility, accessibility, and location, local market conditions, demand for the premises among prospective lessees, and the arrangement you negotiate with the landlord. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C. and in certain other high demand districts, prevailing market rents could be significantly higher than the high estimate. Because of the wide variation in lease rates for retail space, you should consult with a local commercial real estate broker to get a more accurate estimate of costs in your market.

If you choose to instead purchase real estate, we are unable to estimate the total cost of purchasing suitable premises for your Bakery or the amount of any down payment that would be required.

If you choose to instead purchase real estate, we are unable to estimate the total cost of purchasing suitable premises for your Bakery or the amount of any down payment that would be required.

• 1. Grand Opening Marketing. You must conduct a grand opening advertising campaign with the opening of your Bakery. You must pay all costs of the grand opening, including publicity costs, promotional costs, plus the full cost of any price reductions or other customer inducements. Costs may vary depending on your market and the type of advertising used. You must spend for a grand opening advertising program at least (i) $3,000 for a Bakery in an Other Location, (ii) $7,500 for a Bakery in a Streetside Location, (iii) $6,000 for a Co-Branded Bakery in an Other Location (which covers both brands), and (iv) $15,000 ($25,000 if the Bakery is one of your first four Co-Branded Bakeries in an Emerging Market) for a Co-Branded Bakery in a Streetside Location (which covers both brands) in accordance with an advertising plan that we designate or approve . We may require you to pay this amount to us or the Ad Fund for us to spend in accordance with a grand opening advertising plan that we designate or approve.
• 1. Legal and Accounting Fees. This estimate includes the cost of legal and accounting fees that you may incur in establishing your business. Such expenses may include fees payable to attorneys and accountants that you will need to use for the review of this Disclosure Document and the related agreements (and for Co-Branded Bakeries, the cost to review the Franchise Disclosure Document and related agreements for the Co-Branded Franchise), as well as for entity formation and lease negotiation.
• 1. Co-Branded Bakeries. The figures in the Co-Branded Bakery tables have been prepared by us, after consultation with the Co-Branded Franchisors, and are based on our and their experiences franchising our respective franchises and our and their standards for cobranded locations. The estimate includes all of the costs necessary to purchase, develop, and begin operating a Co-Branded Bakery (including a Swirl Bakery), including the costs to acquire an Auntie Anne's® or Carvel® franchise and to construct and outfit the Co-Branded Bakery in accordance with our and the applicable Co-Branded Franchisor's standards for such a co-branded location.
• 1. 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).

Source: Item 7 — Estimated Initial Investment (FDD pages 45–59)