When are real estate and improvement costs due for a Cinnaholic location?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 7 ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $40,000 for each Bakery | Lump Sum | Will be prepaid as part of the Development Fee that is paid upon signing |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, real estate and improvement costs, which range from $75,000 to $220,000, are due before the Cinnaholic bakery opens. These costs are paid to landlords and contractors.
The FDD notes that the cost of leasehold improvements can vary significantly based on factors such as the size and condition of the premises, existing improvements, the extent and quality of desired improvements, and any cash contributions from the landlord. Improvements typically include electrical work, carpentry, floor covering, painting, plumbing, heating, ventilation, and air conditioning.
Prospective franchisees should carefully investigate these costs, considering the wide range of potential expenses and the specific requirements of their chosen location. Understanding these factors is crucial for accurately estimating the initial investment and ensuring the Cinnaholic bakery is set up for success.