Cinnabon Franchise Agreement

If you are considering a Cinnabon franchise, do not be blinded by these 47 important franchise fees (from the initial deductible to the license fee to the other 45 fees found in articles 5 and 6 of Cinnabons FDD 2020). If a Cinnabon franchise can achieve gross margins of 50% (I`m not sure what they are), the break-even point would require revenue of US$168,000 per year. Let`s also assume that the average ticket is $5 (again, I don`t have precise figures, so I have to estimate with what is available on the Internet). This means that our theoretical Cinnabon franchise is expected to complete 33,600 orders per year. If we are open 365 days a year, that`s just over 92 orders a day. When we are open from 10.m to 9 p.m.m. Commitments and restrictions: Franchisees are required to do their best to ensure the proper functioning and efficiency of the bakery. If franchisees are an individual, they must either serve as a manager or appoint a manager. If franchisees are an entity, they must designate a manager who can also be the main interlocutor. Franchisees may only offer bakery customers products approved in writing by the franchisee. Franchisees must produce and sell all authorized products they specify, including all menu items and other products and services that the franchisee requires of franchisees, as set forth in manuals or other parts of the system. Contract term and renewal: For Full Bakeries, the initial term of the franchise is 20 years, with the possibility of extending an additional 20 years if the renewal conditions are met.

For Express Bakeries, the initial term of the franchise is five years, with an option to extend for five years if the renewal conditions are met. For concession bakeries, the initial term of the franchise is five years, with no option to renew. ATLANTA – July 29, 2013 // GLOBE NEWSWIRE // – Cinnabon, Inc., the market leader in snacks in the Bakery CafĂ© segment, has signed a master-franchise agreement for the development of several bakeries in Georgia, which marks the brand`s entry into the Eurasian country and continues to strengthen Cinnabon as the world leader in bakery and special drinks. . . .