Cinnaholic
Cinnaholic offers casual, full-service specialty bakeries focusing on custom gourmet cinnamon rolls and other food products. Known for its delectable cinnamon rolls, this franchise operates in the casual bakery and café industry.
About Cinnaholic
Cinnaholic is an American cinnamon roll bakery franchise founded in 2010 in Berkeley, California. The company is known for its made-to-order, gourmet vegan cinnamon rolls and other sweet treats. As of August 2022, Cinnaholic operates 73 bakeries across the United States and Canada.
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Cinnaholic franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a CINNAHOLIC ® franchised business ranges from $241,082 to $526,582. This includes a mandatory payment of $42,545 directly to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 for each Bakery franchised. This fee is uniform for all prospective franchisees and is not refundable under any circumstances [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales, payable on or before Tuesday of each week for the preceding week's sales. If there is a default in meeting operational standards or obligations, this can be increased to 10% of Gross Sales plus a $250 per week surcharge until the defaults are corrected [p.124]. For advertising fees, Franchisees must contribute no more than 2% of their Gross Sales annually to an Advertising Cooperative, with amounts credited against local advertising requirements [p.135].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts, but a franchisee has the right to renew the franchise for an additional 10-year period upon expiration of the Initial Term, provided all conditions are met as outlined [p.122].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts. The provided FDD sections discuss renewals, transfers, and some legal considerations but do not detail the process or requirements for selling or transferring your franchise.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided pages only detail termination rights for the franchisee, not the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD excerpts, you have a limited protected territory against other CINNAHOLIC® bakeries opening nearby [p.258], but you are not granted an exclusive or protected territory within which to develop your bakery(ies) [p.36, p.203, p.69].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for up to two individuals responsible for daily operations, which includes certification through written tests and on-the-job demonstrations [p.34]. Ongoing support includes additional training programs that may incur fees [p.35], and access to training instructors like Derrick Johnson and Eleni Dandelakis who have extensive experience in bakery operations [p.35]. The franchisor also offers ongoing assistance, advertising, and promotional programs as part of the franchise system [p.6].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were a total of 82 open and operating Cinnaholic franchised units. However, the number of closed or terminated units is not specified in the excerpts provided.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information for existing outlets, but only if there is a reasonable basis and it is included in the Disclosure Document [p.50]. Additionally, written substantiation can be provided upon request [p.54]. This isn't specified in the excerpts whether the franchisor shares such information proactively without a request from the franchisee.
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell only those products and services approved by the franchisor. This includes custom gourmet cinnamon rolls and other food products and beverages that they designate as required for all franchisees [p.41]. There are no limits on their right to modify the approved menu [p.41]. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than similar items purchased elsewhere [p.3].