Cinnabon Signs Development Agreement in South Korea for 50 Bakeries

Cinnabon, a subsidiary of AFC Enterprises, Inc., announced its emergence into the South Korean market by signing a development agreement for 50 Cinnabon bakeries over the next six years.

Cinnabon's new Franchise partner, YBM FNB, Inc., is a diversified media company that was founded in 1961 by Y.B. Min. YBM is the largest publisher of English language media, video, audio and print in Korea. It is also the exclusive distributor for major magazines such as Newsweek, National Geographic and Reader's Digest. Among some of its other businesses, YBM is the publishing partner of Random House, MacMillan (USA), Simon Schuster/Prentice Hall, Walt Disney Video and Sesame Street Video.

YBM also includes in its business portfolio retail, wholesale and recording companies in the music industry, such as Music Land and Seoul Records.

Cinnabon is the world-wide leader in the QSR cinnamon roll bakery category. As of December 31, 2000, the company operated and franchised more than 451 bakeries worldwide. The bakeries are located in 40 states and eleven foreign countries. Founded in Seattle, Wash., in 1985, Cinnabon bakeries are located in high-traffic venues such as shopping malls, train stations and travel plazas. The bakeries typically are located in 500- to 1,500-square- foot areas. Cinnabon bakeries have built a reputation for serving fresh, aromatic, oven-hot cinnamon rolls made with premium Indonesian cinnamon and topped with sweet, rich, cream cheese-based frosting. Cinnabon had system- wide sales of approximately $184.4 million in 2000.