Risk Score
Pending analysis
Investment Range
$29,150 - $1,099,500
Franchise Fee
$1,000
Total US Locations
1,030
Business Summary
Cinnabon Franchisor SPV LLC operates Cinnabon retail bakeries that sell fresh baked cinnamon rolls and related products. The franchise offers various bakery formats including Full Bakeries, Express Bakeries, Concession Bakeries (food trucks or trailers), and co-branded options with Auntie Anne's or Carvel, including a unique Swirl Bakery concept. These are typically retail stores or kiosks, with some mobile units, that focus on fresh baked goods.
Corporate History
Cinnabon Franchisor SPV LLC was organized in Delaware on February 2, 2017, and operates under the Cinnabon brand. Its predecessor, Cinnabon LLC (originally incorporated as Cinnabon, Inc., a Washington corporation), first offered Cinnabon franchises from 1990 to 1994 and again from March 1999 to April 2017. Cinnabon LLC became affiliated with GoTo Foods (formerly Focus Brands LLC) in November 2004 through an acquisition. Cinnabon Franchisor SPV LLC officially began offering Cinnabon franchises in April 2017. As of December 31, 2024, the Cinnabon system included 1,002 franchised bakeries in the United States.
Financial Overview
Investment Range
$29,150 - $1,099,500
Franchise Fee (Low)
$1,000
Franchise Fee (High)
$66,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$11,200
Equipment Costs (High)
$760,700
Working Capital
$24,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cinnabon Franchisor SPV LLC's guarantor, GoTo Foods Systems LLC, demonstrates strong financial health with positive and growing net income ($253,964 thousand in 2024) and positive working capital ($29,355 thousand in 2024). Its indirect parent, GoTo Foods LLC, reported negative working capital ($-10,147 thousand in 2024) and a significant member's deficit ($-759,874 thousand in 2024), indicating a reliance on substantial long-term debt ($1,335,842 thousand in 2024). Despite these differences, the independent auditors issued unqualified opinions for both entities, and the FDD states they were in compliance with all debt covenants and there was no substantial doubt about their ability to continue as a going concern.
Financing Details
Cinnabon Franchisor SPV LLC does not offer any direct or indirect financing for franchise fees, equipment, inventory, or any other purpose. The franchisor may refer franchisees to unaffiliated leasing or financing companies, but Cinnabon Franchisor SPV LLC and its affiliates do not receive any fees or financial benefits from these referrals and do not guarantee any loans or obligations. In specific cases, Cinnabon Franchisor SPV LLC or its affiliates may lease Satellite Retail Units (SRUs) to qualified franchisees as an optional additional selling location.
Performance Metrics
Total US Locations
1,030
Franchised Units
1,002
Corporate Units
28
Avg Square Footage
775
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Cinnabon Franchisor SPV LLC itself has no litigation to report. However, its affiliates, Arby's Restaurant Group, Inc. and Dunkin' Brands, Inc., were involved in three legal actions that have been settled. Two cases, filed in 2019, involved state Attorneys General alleging that "no-poaching" provisions in Arby's and Dunkin' franchise agreements violated antitrust and consumer protection laws. Both affiliates denied wrongdoing but entered into settlement agreements to remove or not enforce these provisions. The third case, filed in 2019, was against Dunkin' Brands, Inc. by the NY Attorney General concerning cyberattacks and alleged failures in data breach notification in 2015 and 2018. This case was settled in 2020 with a payment of $650,000 in penalties and costs and an agreement to maintain a robust information security program.
Bankruptcy History
Cinnabon Franchisor SPV LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew their Cinnabon franchise agreement for a successor term, franchisees must submit a timely written request and complete a renewal application. They must have maintained substantial and timely compliance with their franchise agreement and other agreements, and have no existing defaults. Franchisees are required to remodel, refurbish, and renovate their bakery to meet Cinnabon's then-current standards and secure the right to operate at the accepted location for the renewal term or relocate if necessary. They must also sign and return Cinnabon's then-current renewal franchise agreement (which may have materially different terms), pay a renewal fee equal to 20% of the then-current initial franchise fee, and both the franchisee and their guarantors and owners must sign a general release of claims against Cinnabon. For Co-Branded Bakeries, the franchisee must also secure the right from the Co-Branded Franchisor to continue operating the Co-Branded Franchise.
Training & Support Program
Franchisor Assistance
Cinnabon Franchisor SPV LLC provides comprehensive assistance to its franchisees. Before opening, this includes reviewing and accepting the proposed location, evaluating co-branding or Host Facility requests, and designating or pre-approving general contractors and architects. Cinnabon provides a sample layout and specifications for the bakery, then reviews and approves the franchisee's architectural plans. The franchisor also furnishes specifications for goods, identifies approved suppliers, and provides access to confidential operations manuals and advice. Initial training is provided for managers, and Cinnabon approves grand opening advertising materials and the overall bakery opening. After opening, Cinnabon continues to identify approved suppliers, reviews any proposed new suppliers or products, and manages the advertising fund. The franchisor updates its operating standards and manuals, reviews franchisee advertising, and offers ongoing support services, which can be provided on-site, off-site, by telephone, or through other means. Additionally, Cinnabon reviews proposed relocations and remodeling plans for the bakery.
Initial Training Hours
85
Training Location
Online modules and Certified Training Locations that Cinnabon specifies
Ongoing Support
Cinnabon Franchisor SPV LLC provides ongoing support services to franchisees that it deems advisable, which can be delivered on-site, off-site, by telephone, or through other means. The franchisor may also offer additional consulting or support services beyond the standard offerings, including extra on-site training and remote assistance, for a reasonable fee (currently $500 per trainer per day plus travel and living expenses). This additional support is subject to availability and Cinnabon's discretion. Franchisees and their personnel are required to attend any mandatory conferences, conventions, programs, webinars, teleconferences, or additional or refresher training sessions that Cinnabon specifies, for which a reasonable fee (currently $0 to $2,500 per attendee) may be charged.
Franchise Requirements
Ideal Candidate Profile
Cinnabon Franchisor SPV LLC seeks franchisees who will appoint a Primary Contact responsible for the bakery's decision-making and operations, and at least two full-time Managers dedicated to the bakery. These Managers must successfully complete Cinnabon's Management Training Program and will have day-to-day management and on-premises supervision responsibilities. Cinnabon does not recommend this investment for absentee owners, implying a need for active managerial oversight. Candidates must pass a financial credit check, may be tested for basic English competency, and undergo a criminal background check. For multi-unit operators with four or more bakeries, a Director of Operations may be required.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staffing Notes
Cinnabon Franchisor SPV LLC requires franchisees to appoint a Primary Contact responsible for the bakery's operations and at least two full-time Managers dedicated to the bakery. These Managers must successfully complete Cinnabon's Management Training Program and will have day-to-day management and on-premises supervision responsibilities. If the franchisee or its affiliates operate four or more bakeries, Cinnabon may also require the appointment of one or more Directors of Operations to supervise multiple locations. Cinnabon discourages absentee ownership, implying a need for active managerial oversight if not direct owner participation. Managers and Directors of Operations must successfully complete specific training and meet other minimum standards. In case of death, disability, or termination of a Primary Contact, Manager, or Director of Operations, a successor must be designated within 30 days.