What is the range for the estimated total initial investment for a Cinnabon franchise?

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 |

YOUR ESTIMATED INITIAL INVESTMENT: CARVEL CO-BRANDED BAKERY 26

Explanatory Notes:

The charts above provide an estimate of your initial investment for one Bakery. These charts do not include an estimate for the cost of opening or operating an SRU, which is an optional add-on that may be offered after you have operated your Bakery. The charts should be read in conjunction with the following notes.

You should review this information, including the footnotes, carefully, conduct your own investigation and seek the help of qualified advisors before making any decision about an initial investment in a Bakery.

None of these fees or payments are refundable unless otherwise noted below.

• 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).
• 1. Construction and Build Out Costs. This estimate includes fees paid to a general contractor you engage to build out the Bakery to meet our Standards (and for a Co-Branded Bakery, the standards of the Co-Branded Franchisor too). Leasehold improvements include but are not limited to HVAC, electrical, carpentry, floor covering, and painting. The cost of a general contractor will vary widely depending on the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements you desire over and above our minimum requirements, your landlord's cash contribution to the cost of the improvements, and the local costs of material and labor. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor. This estimate does not include leasehold improvements for new free-standing buildings or new free-standing buildings with a drive-thru, as the costs for this format may vary significantly. For Co-Branded Bakeries (other than a Swirl Bakery), the estimate is based on mall and streetside locations. The Swirl Bakery estimate is based on streetside locations.

You may be able to negotiate tenant improvement allowances from your landlord. The estimate is presented net of estimated tenant improvement allowances. For the low estimate, we estimated a tenant improvement allowance of $30,000, which is approximately the average tenant improvement allowance that our franchisees have reported to us. For the high estimate, we assumed that a tenant improvement allowance was not available.

For Full Bakeries located in a Non-Traditional location and Express Bakeries, the Construction and Build Out Cost category includes all millwork, menu boards, and interior signage.

• 1. Permitting. This estimate includes the cost of acquiring construction permits, including permit fees. Your costs will vary depending upon your Bakery's location. In some markets, the costs of required permits may significantly exceed our estimates.
• 1. Equipment Package. You must purchase or lease from an Approved Supplier certain equipment (like kitchen equipment) and machinery that complies with our Standards (and for a Co-Branded Bakery, the standards of the Co-Branded Franchisor too). Your actual costs will vary depending on a number of factors including, without limitation, building codes and health requirements of the state where your Bakery is located.

These amounts do not include the costs of any owned, hired, or leased delivery motor vehicles that you may utilize in the operation of the Bakery. If you offer delivery and catering services under the terms of the Franchise Agreement, you may need to purchase at least one branded catering vehicle equipped per our specifications, which will cost approximately $25,000 to $35,000 if purchased, or $500 to $700 per month if leased, although leased costs may vary significantly.

For Full Bakeries located in a Non-Traditional location and Express Bakeries, the Equipment Package category includes all smallwares.

• 1. Millwork. You will incur expenses for millwork at the Bakery, which may include the cost of purchasing cabinets and counters from Approved Suppliers and installing them in the Bakery.
• 1. Furniture. You must purchase from Approved Suppliers furniture that meets our Standards, such as tables, chairs, and office furniture.
• 1. Menu Board, Graphics, and Interior Signage. This estimate includes the cost of purchasing digital and/or static menu boards and interior signage from Approved Suppliers. The cost will vary based on the size of your Bakery.
• 1. Exterior Signage. You must purchase exterior signage from Approved Suppliers. The cost of your exterior sign will vary depending on the size, color, quantity and backlit channel letters of the sign and other specifications as we require.
• 1. Computer System. You must purchase, lease, and/or license and install at the Bakery the POS System, computer systems, mobile hardware, software, online ordering platform, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that we require from time to time (collectively, the "Computer System").

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