Cinnabon Franchise Cost, Revenue & Review 2026
- Investment
- $257K – $704K
- Disclosed sales
- $665K
- gross sales, not profit
- SBA charge-off
- 6.9%
- on 63 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Cinnabon is a bakery franchise known for its premium cinnamon rolls, baked goods, and specialty drinks. Franchisees run kiosks and small-format counters in malls, airports, and co-branded locations, managing baking and quick service.
FranchiseVerdict summary · 2026
A Cinnabon franchise requires a total initial investment of $257K – $704K, including a $36K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $665K[2]. SBA 7(a) loans show a 6.9% charge-off rate across 63 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $257K – $704K
- 39th pct Service Resta…
- Avg gross sales
- $665K
- Net sales9th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 1,338
- 93rd pct Service Resta…
- SBA charge-off
- 6.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $257K – $704K including a $36K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $665K/year (median $601K).
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 6.9% across 63 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +308 franchised outlets in the latest year (348 opened, 3 closed); 359 signed but not yet open (Item 20).
- GROWTHSystem growing at 37.6% CAGR over 3 years with 1338 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cinnabon Franchisor SPV LLC
- Parent company
- GoTo Foods Systems LLC
- FDD Item 1, page 10 of the 2026 FDD
- Ultimate parent
- GoTo Foods LLC
- FDD Item 1, page 10 of the 2026 FDD
- Predecessor
- Cinnabon LLC (CLLC)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Omer Gajial
- Incorporated in
- DE
- HQ
- 5620 Glenridge Drive NE, Atlanta, Georgia 30342
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $321.4M
- vs $308.9M prior year
Same owner · FDD Item 1, page 10
6 other brands on this site name GoTo Foods LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Omer Gajial
- Headquarters
- GA
- Founded
- 1990
- FDD year
- 2026
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $36K | $36K |
| Working capital (3–6 mo) | $15K | $33K |
| Equipment, build-out, other | $206K | $635K |
| Total initial investment | $257K | $704K |
Source: Cinnabon 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $257K – $704K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $33K
- Top 40% of category vs category
- Franchise fee
- $36K – $36K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of net sales |
| Marketing / ad fund | 2.5% of net sales |
| Technology fee | $0 |
| Training fee | $6K |
| Transfer fee | $18K |
| Renewal fee | $7K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 32% below the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Cinnabon until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$504K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Cinnabon unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $665K
- Per unit, per year
- Median gross sales
- $601K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales by quartile
- Sample size
- 189 outlets
- vs category median 19 · large
- Range (low → high)
- $186K→$2.2MCited, not corroborated — printed on page 100 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $344K→$1.1M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $665K/year in gross sales. Revenue-to-investment ratio: 1.4x.
Fee burden
Total ongoing fee load of 8.5% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 37.6% CAGR over 3 years across 1,338 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Cinnabon Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,338
- Opened
- 348
- Last reporting year
- Closed
- 3
- Terminated
- 36
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.3%
- Company-owned
- 28
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +37.6%
- Net unit change over 3 years
- 3-yr CAGR
- +37.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 36
- Not renewed
- 1
- Transferred
- 45
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 359
- 0.27 per open outlet · Item 20 Table 5
- Projected new
- 95
- Franchisor's next-year forecast
- Transfer rate
- 3.4%
- Owners selling to other franchisees
- Continuity rate
- 97.0%
- Units that stayed open
- Termination rate
- 2.8%
- Franchisor-initiated terminations
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
1,359 current owners across 48 states.
- TE 239
- NE 167
- CA 161
- UT 123
- ID 68
- MI 66
- AR 49
- FL 44
- WA 36
- GE 35
- IL 35
- OH 29
- +36 more states
Counts only, from the list the franchisor prints in Item 20; 5 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 63
- Loan volume
- $25.9M
- Median loan
- $269K
- 50th percentile
- Charge-off rate
- 6.9%
- on 63 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 93.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 36
- Defaults
- 2
- Typical loan rate
- 7.4%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 1,063
- 4.7 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 63% went to startups / new businesses, 37% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Cinnabon charge-off rate by loan vintage
Top lenders financing Cinnabon franchisees
Showing 3 of 36 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Cinnabon from SBA 7(a) FOIA data.
- Principal loss rate
- 7.3%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 7.41%
- Avg chargeoff amount
- $827K
- Lender concentration
- 17.0%
- Job velocity
- 4.7 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 1,063
Top SBA lendersTop lender holds 17% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 9 | $2.2M | 0.0% |
| 2 | Wells Fargo Bank National Association | 3 | $949K | 0.0% |
| 3 | Byline Bank | 3 | $4.8M | 66.7% |
| 4 | JPMorgan Chase Bank, National Association | 2 | $193K | 0.0% |
| 5 | EagleBank | 2 | $501K | 0.0% |
| 6 | Simmons Bank | 2 | $1.2M | 0.0% |
| 7 | United Community Bank | 2 | $640K | 0.0% |
| 8 | Bank of Hope | 2 | $240K | 0.0% |
| 9 | PCB Bank | 2 | $495K | 0.0% |
| 10 | Commonwealth Business Bank | 2 | $945K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 9 | 2 | 25.0% |
| PAPennsylvania | 8 | 0 | 0.0% |
| TXTexas | 8 | 0 | 0.0% |
| VAVirginia | 5 | 0 | 0.0% |
| NYNew York | 4 | 0 | 0.0% |
| OHOhio | 3 | 0 | 0.0% |
| CTConnecticut | 2 | 0 | 0.0% |
| MIMichigan | 2 | 0 | 0.0% |
| WAWashington | 2 | 0 | 0.0% |
| ILIllinois | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 6.9% — 57% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Cinnabon presents moderate-to-cautionary risk due to missing profitability disclosure, unprotected territories, litigation history, and unclear unit economics that prevent prospective franchisees from validating investment returns.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed for Cinnabon Franchisor SPV LLC. Three affiliate actions disclosed (Arby's no-poach settlement, Dunkin' no-poach settlement/data breach, Jimmy John's Maryland FDD omission consent order), none involving Cinnabon.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financials are for GoTo Foods Systems LLC (parent guarantor), not Cinnabon Franchisor SPV LLC itself; presented in thousands
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate ROI claims or assess true profitability
- 02MINORUnprotected territory creates direct competition risk; 30.7% YoY unit growth suggests market saturation concerns
- 03MEDLitigation history involving no-poaching provisions and disclosure omissions indicates compliance issues and potential franchisee misrepresentation
- 04MED6% royalty on undisclosed net income means franchisees cannot calculate break-even or true cost burden
- 05HIGHAffiliated brand litigation (Arby's, Dunkin', Jimmy John's) under same parent company signals systemic corporate governance problems
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 0 days |
| Termination groundsℹ | 13 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Metropolitan area of Georgia (where franchisor's principal place of business is located) |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed for Cinnabon Franchisor SPV LLC. Three affiliate actions disclosed (Arby's no-poach settlement, Dunkin' no-poach settlement/data breach, Jimmy John's Maryland FDD omission consent order), none involving Cinnabon.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 60 hrs
- Training location
- Online modules (classroom) and Certified Training Locations (OJT); corporate HQ in Atlanta, GA
- Ongoing training
- Required
- Site selection
- franchisor_approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Franchisor-designated POS system (vendor not named)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchisor-designated POS system (vendor not named)
Item 20 · call current owners
Franchisee Contacts
1,364 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cinnabon franchise?
The total investment to open a Cinnabon franchise ranges from $257K – $704K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cinnabon franchise owners earn?
According to Item 19 of the Cinnabon FDD, the average gross sales per unit is $665K. The median is $601K. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Cinnabon?
Cinnabon is franchised by Cinnabon Franchisor SPV LLC. Its parent company is GoTo Foods Systems LLC. The ultimate parent named in the FDD is GoTo Foods LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Cinnabon FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Cinnabon FDD and qualifies whose outlets they describe.
What is Cinnabon's franchise failure rate?
Based on SBA 7(a) loan data, Cinnabon has a charge-off rate of 6.9% across 63 loans, meaning 6.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Cinnabon franchise locations are there?
As of their most recent FDD filing, Cinnabon has 1,338 total units in the United States, including 1,310 franchised units and 28 company-owned units. 348 new units were opened in the latest reporting year.
Is Cinnabon a good franchise to buy?
FranchiseVerdict rates Cinnabon as a A-grade franchise with a verdict score of 79 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.