Cinnaholic in Mesa – High Margin Franchise – Turnaround Opportunity

Business Overview

Own a fully built-out Cinnaholic in Mesa, located in a high-growth retail corridor with strong co-tenancy, heavy traffic, and long-term lease security. This nationally recognized gourmet cinnamon roll franchise offers premium pricing power, strong brand recognition, and excellent gross margins. The business generated approximately $291,540 in 2025 revenue with a 77.9% gross margin, consistent with historical margins ranging from 78% to 85%. The product model is strong and the cost of goods structure is excellent. Recent losses were driven primarily by absentee ownership and labor inefficiencies — not weak sales or poor unit economics. In 2024, during a period of consistent active management (May–December), the store produced positive net income, demonstrating that profitability is achievable with proper labor control and hands-on ownership. 2025 Financial Snapshot: Revenue: $291,540 Gross Profit: $227,082 Net Income: ($20,891) The primary opportunity lies in operational improvement. A modest 8–12% labor correction would return the business to positive cash flow. Marketing efforts have been minimal, creating additional upside through catering, school partnerships, community events, and digital promotions. The lease runs through 2032 with attractive rent of approximately $3,750 per month including NNN, providing long-term stability in a newer multi-tenant center within a rapidly expanding residential corridor of Mesa. This opportunity is ideal for: Owner-operators Husband and wife teams First-time franchise buyers Buyers seeking a strong brand with operational upside The store was built to full franchise standards at a buildout cost far exceeding the asking price. A buyer is acquiring a nationally recognized dessert franchise with proven revenue, strong margins, and immediate upside potential. The seller is pursuing other interests and is ready for a transition to a motivated operator who can take this location to the next level. The business is listed by HUB Commercial, an affiliate of Sunbelt Business Brokers in the State of Arizona. All listing and financial information to be verified by the buyer during due diligence. Ad#:2440763