Cinnabon vs Breadsmith Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Cinnabon vs Breadsmith including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$23,100 - $430,900 | $380,250 - $454,750 |
Franchise Fee |
$30,000 | $30,000 |
Royalty Fee |
6% | 7% - 5% |
Advertising Fee |
1.5% | - |
Year Founded |
1969 | 1993 |
Year Franchised |
1986 | 1993 |
Term Of Agreement |
10-20 years | 15 years |
Term Of Agreement |
10-20 years | 15 years |
Renewal Fee |
50% of current franchise fee | $500 |
Business Experience Requirements |
Experience |
Industry experience General business experience Marketing skills
"Passion and enthusiasm in being a small business owner, and having the go-getter mentality… You've got to like people to do business at Cinnabon."
- Mark Hong, director of franchise development | General business experience Marketing skills helpful but not necessary |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/Yes | No/Yes |
Start-up Costs |
No/Yes | No/Yes |
Equipment |
No/Yes | No/Yes |
Inventory |
No/Yes | No/Yes |
Receivables |
No/Yes | No/Yes |
Payroll |
No/Yes | No/Yes |
Training & Support |
Training |
On-The-Job Training: 40 hours
Classroom Training: 40 hours
Additional Training: Additional training annually
| On-The-Job Training: 219.5 hours
Classroom Training: 51 hours
|
Support |
Purchasing Co-ops
Newsletter
Meetings/Conventions
Toll-Free Line
Grand Opening
Online Support
Security/Safety Procedures
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform | Purchasing Co-ops
Meetings/Conventions
Toll-Free Line
Grand Opening
Online Support
Security/Safety Procedures
Field Operations
Site Selection
Franchisee Intranet Platform
|
Marketing |
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social media
SEO
Website development
Email marketing
Loyalty program/app | Ad Templates
Social media
SEO
Website development
Email marketing |
Operations |
Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8
- 10
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 20
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
US Expansion |
Yes | Yes |
Canada Expansion |
No | No |
International Expansion |
Yes | No |
Company Overviews
About Cinnabon
Since 1969, malls throughout the world have been filled with the scent of Cinnabon. Each bakery serves fresh and prepackaged cinnamon rolls, Pecanbons (cinnamon rolls topped with pecans and caramel frosting), coffees and other drinks.
If success was a freshly baked treat, it would be Cinnabon®.
- Super sweet average net sales of $861,481 for the top quartile of franchise owners*
- A global, iconic brand with enviable brand awareness and strong affinity with Millennials and Gen Z
- A category leader that dominates the sweet treat segment
- The strong support and tools of FOCUS Brands®
Become a Cinnabon® franchise owner, and
learn what it means to be the most popular kid on the block! Our
one-of-a-kind, insanely craveable baked goods and specialty beverages
have made Cinnabon® a world-class brand with world-class economics.
Cinnabon® owns the cinnamon roll
category, and we’re looking for people to grow our legacy and “bake”
good on the promise that is our brand.
The total investment necessary to begin operation of a Full Bakery
franchise ranges from $214,050 to $430,900 in a Traditional Location and
from $122,500 to $419,200 in a Non-Traditional Location. This includes
$30,000 to $30,400 that must be paid to the franchisor or their
affiliates.
The total investment necessary to begin operation of an
Express Bakery ranges from $23,100 to $43,500 in a new Schlotzsky’s®
restaurant and from $59,000 to $155,750 in any other location. This
includes $7,500 to $7,900 that must be paid to the franchisor or their
affiliates.
The total estimated investment necessary to begin operation of a Concession Bakery ranges
between $110,000 and $244,600. This includes $5,000 to $5,400 that must
be paid to the franchisor or their affiliates.
Veteran Incentives $5,000 off franchise fee
#53 in Franchise 500 for 2020.
#35 in Franchise 500 for 2021.
About Breadsmith
While studying in Norway, college student Dan Sterling got his first taste of European bread. Sterling returned to the United States and graduated from Harvard Business School before starting his own company. But he never lost his love of bread, and after volunteering to help a local bakery with its accounting, he decided to launch a bakery of his own. He opened the first Breadsmith location in 1993, and the company began franchising in 1994.
The total investment necessary to begin operation of a Breadsmith
primary franchise store is $380,250 to $449,750 ($377,250 - $451,750 for
veterans). This includes $100,000 to $115,000 (less $3,000 if you are a
veteran) that must be paid to the franchisor or affiliate.
An
additional investment of $95,500 to $163,500 is necessary if a satellite
location is opened in connection with the primary store. This includes
$5,000 that must be paid to the franchisor or affiliate.
Veteran Incentives 10% off franchise fee
#333 in Franchise 500 for 2020.
#333 in Franchise 500 for 2021.