пятница, 8 февраля 2013 г.

цены в синабон

If a Cinnabon franchise can earn gross profit margins of 50% (I’m not exactly sure what they are), break-even would require sales of $168,000 annually.ВP Furtherm

Cinnabon franchise owners serve a special blend of Seattle's Best coffee, which is made by a subsidiary of Starbucks.

Here is where our Charlie Munger / Jacobian inversion comes into play …

Working the Cinnabon Franchise Numbers Backward, a la Jacobian Inversion

Let’s presume that payroll costs and insurance would run $5,000 per month.ВP This gets us up to $7,000 in fixed expenses.ВP That is $84,000 per year.

We had one of our companies contact the leasing agent at the local mall, who quoted us a price of roughly $1,500 to $2,200 per month for the premises.ВP This particular mall is notorious in the community for attempting to charge higher rents than the market will bear (which is why a good portion of it remains vacant), so it’s possible we would have opened it in a neighboring community, instead.

I cannot discuss what’s in the document itself, but suffice it to say that a quick Google search shows that the typical investment for a Cinnabon franchise ranges from $71,000 to $370,000 depending upon location and size.ВP Since virtually all Cinnabons are on leased premises, the lease expense isn’t included in this figure because it counts as an on-going operating cost.

I worked my way through the Cinnabon franchise disclosure document that the Focus brands company sent and the problem I'm having is two-fold: 1. It seems like the investment itself is a craps-shoot in the sense that there appear to be a few highly successful Cinnabon franchise locations but the others may not be (I can't tell, obviously, without speaking to individual Cinnabon franchise owners), and 2. It probably isn't worth the time investment relative to the potential profit payoff.Here are our thoughts …

One of the companies we researched was Cinnabon, the maker of (what I consider) to be the world’s best cinnamon rolls.ВP The company’s owner, Focus Brands, sent us a franchise disclosure document and I began working my way through it.ВP I love the Cinnabon brand and the idea of owning a local Cinnabon franchise is appealing because it would mean I could grab a cup of coffee each morning from my own business.ВP It obviously wouldn’t be a large part of our holdings, but it would have a certain emotional appeal and bring jobs to the local community.

We thought it would be a good place to invest the money we were earning from our other businesses without having to be involved on a day-to-day basis.ВP In other cases, we thought it might be a good way to structure companies so that our immediate family members could make an investment alongside us and, in some cases, run the companies as managers / minority-owners.

I mentioned yesterday in the article on owners that after graduating from college, Aaron and I had looked into putting capital to work by opening several franchises in the town where we grew up.ВP

A Brief Flirtation with a Cinnabon Franchise

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A Brief Flirtation with a Cinnabon Franchise

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