What was the total operating lease cost for Cinnabon in 2024?

According to Cinnabon's 2025 Franchise Disclosure Document, the total operating lease costs for the fiscal year ended in 2024 were $19,106. This figure includes both operating lease costs and variable lease costs. In comparison, the total operating lease costs for the fiscal year ended in 2023 were $20,964.

Operating lease costs for Cinnabon encompass expenses related to leases for Company SBRs (satellite bakeries and restaurants), which are recorded under Company store, bakery, and restaurant operations expenses. They also include leased properties that are subleased to franchisees, recorded under Franchise and other rental expenses, as well as leases for corporate offices, which are recorded under Selling, general, and administrative expenses. Variable lease costs primarily consist of common area maintenance, real estate taxes, and contingent rent based on a percentage of SBR sales.

For a prospective Cinnabon franchisee, understanding these lease costs is crucial. While the provided data reflects Cinnabon's overall lease expenses, franchisees will need to carefully review their individual lease agreements to understand their specific obligations. These obligations can include fixed rental payments, variable costs like CAM and property taxes, and potential contingent rent based on sales performance. Franchisees should also consider the location of their Cinnabon unit, as lease terms can vary significantly based on factors such as market conditions and landlord negotiations.

It is important for potential franchisees to consult with financial advisors and legal professionals to fully understand the financial implications of leasing a Cinnabon location. This includes reviewing the lease agreement, understanding the allocation of lease costs, and assessing the potential impact of variable costs on their overall profitability.