Cinnabon vs LaMar's Donuts Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Cinnabon vs LaMar's Donuts including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Cinnabon Franchise
LaMar's Donuts Franchise
Investment $23,100 - $430,900$288,500 - $366,500
Franchise Fee $30,000$28,500
Royalty Fee 6%5%
Advertising Fee 1.5%-
Year Founded 19691960
Year Franchised 19861993
Term Of Agreement 10-20 years10 years
Term Of Agreement 10-20 years10 years
Renewal Fee 50% of current franchise fee-


Business Experience Requirements
 
Cinnabon Franchise
LaMar's Donuts Franchise
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

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Cinnabon Franchise
    LaMar's Donuts Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    Cinnabon Franchise
    LaMar's Donuts Franchise
    Training On-The-Job Training: 40 hours Classroom Training: 40 hours Additional Training: Additional training annually As needed
    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 PlatformNewsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks, National media, Regional advertising
    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)

    Number of employees needed to run franchised unit: 15

    Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators)

    Expansion Plans
     
    Cinnabon Franchise
    LaMar's Donuts Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesNo

    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
    "World     "Entrepreneur
    #53 in Franchise 500 for 2020.
    #35 in Franchise 500 for 2021.




    About LaMar's Donuts

    Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.

    In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.