To open a Cinnabon franchise, you’ll need to be ready for some key financial commitments. First, there’s an initial franchise fee of $30,000. This fee is your ticket into the Cinnabon family.
You also need to have $120,000 in liquid capital. This means readily available money, not tied up in assets. Moreover, you must have a net worth of $400,000. This includes all your assets minus liabilities.
The total investment to open a Cinnabon ranges between $233,700 to $546,800, or $142,333 to $365,700, depending on the location and size of the store. These figures cover everything from building costs to equipment and inventory.
Once your Cinnabon is up and running, you will need to pay ongoing fees. There’s a 6% royalty fee on net sales. Additionally, there’s a marketing fee ranging from 1.5% to 3% of net sales, based on the store’s location. Plus, you’ll contribute at least 1% of net sales to local marketing efforts.
These fees and investments are necessary to start and manage a Cinnabon franchise successfully. They cover initial setup costs and help maintain brand standards and marketing efforts. Opening a Cinnabon requires a significant investment, but with the right location and effort, it can be a rewarding venture.