About Sprinkles Franchise Group Franchise
Sprinkles is the original cupcake bakery franchise, widely credited with sparking the gourmet cupcake movement.
The brand, backed by Sprinkles Franchise Holdings, LLC, has been offering franchise opportunities since 2021.
Sprinkles is famous for its handcrafted cupcakes made daily with premium ingredients, including its iconic Cupcake ATMs that dispense fresh cupcakes 24 hours a day.
Sprinkles Franchise Group Franchise Cost & Fees
Minimum Investment
$880K
Average Investment
$1.1M
Maximum Investment
$1.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Bakery’s Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 5% of Gross Sales (Marketing Spending Requirement) | National brand fund |
| Total Investment Range | $880,000 – $1,310,000 | Includes build-out, inventory, working capital |
The investment range of $880K–$1.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Bakery’s Gross Sales) and marketing fee (Up to 5% of Gross Sales (Marketing Spending Requirement)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $40,000 | $40,000 |
| Construction and leasehold improvements | $400,000 | $500,000 |
| Architect Fee | $25,000 | $50,000 |
| Operating Assets | $240,000 | $340,000 |
| Signs | $30,000 | $40,000 |
| Cupcake ATM | $0 | $80,000 |
| 3 months’ rent | $30,000 | $60,000 |
| Security deposit | $5,000 | $25,000 |
| Opening inventory and supplies | $40,000 | $50,000 |
| Grand opening marketing | $10,000 | $15,000 |
| Training expenses | $25,000 | $50,000 |
| Miscellaneous opening costs | $5,000 | $10,000 |
| Additional Funds – 3 months | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,500 (non-control transfer); 25% of the then current initial franchise fee (currently $10,000) (control transfer) |
| Renewal Fee | 50% of the then current initial franchise fee (currently $20,000) |
| Technology Fee | Currently $300 per month (Sprinkles Web Platform fee) |
| Audit Fee | Cost of audit |
| Marketing Spending Requirement shortfall | Difference between Marketing Spending Requirement and amount you spent |
| Guest services phone support fees | Currently $1.25 per call |
| One-off menu updates | Currently $100 per hour |
| Ongoing training fees | Currently $0 to $2,500 per year |
| Operations Manual replacement fee | $500 |
| Supplier review fees | Currently $1,500 |
| Product review fees | Currently $1,500 |
| Management fee | 3% of Gross Sales plus direct costs and expenses |
| Costs and attorneys’ fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Relocation | Currently $2,500 to $10,000 |
| Interest | 1.5% per month or highest interest rate the law allows, whichever is less |
| Insurance costs | Premiums plus our costs and expenses |
| Inspections | Currently $1,000 plus travel expenses |
| Liquidated damages | Average monthly Royalties and Brand Fund contributions owed during the 12 months before termination multiplied by 36 or remaining months in term, whichever is less |
| Deadline extension fee under Development Rights Agreement | $2,500 |
| Additional site visits under the Development Rights Agreement | $1,000 for each site visit (after the first 2 site) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 360 hours |
| Classroom Training | 38 hours |
| On-the-Job Training | 322 hours |
| Training Location | Certified Training Bakery in Dallas, Texas |
| Additional Training | During the Franchise Agreement’s term, we may require you and/or your personnel, including your Managing Owner and General Manager, to attend and satisfactorily complete various training courses and programs and evaluation programs, including online training, that we choose to provide periodically at the times and locations we designate. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | May be as small as a few blocks or as large as an entire state |
| Description | Territories are determined using geographic boundaries (counties, cities, zip codes, city blocks) and depend on market characteristics like demographics, traffic flow, parking, visibility, competition, and physical characteristics. We and our affiliates retain the right to operate or authorize others to operate Sprinkles Cupcakes Bakeries at Non-Traditional Locations within your Territory and at other locations if you breach the Franchise Agreement. You may face competition from other franchisees, company-owned outlets, or other distribution channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 50% of the then current initial franchise fee |
| Renewal Conditions | Franchisee must have substantially complied with the agreement, provide written notice 12-15 months before term end, demonstrate right to maintain possession of site for 10 years, and renovate/remodel the Bakery to meet current requirements for new similarly situated Sprinkles Cupcakes Bakeries. |
| Transfer Fee | $2,500 (non-control transfer); 25% of the then current initial franchise fee (control transfer) |
| Transfer Conditions | Approval conditions vary by transfer type (non-control vs. control). Generally require compliance with agreements, written notice (30 days), payment of transfer fee, signing a general release, transferee meeting franchisor standards, and transferring owners agreeing to non-compete. For control transfers, new management must complete training, and the Bakery may need upgrades. For Pantry Bakeries, simultaneous transfer of an affiliated Production Bakery may be required. |
| Termination for Cause | Franchisor may terminate for various reasons including material misrepresentation, failure to complete training, failure to open on time, abandonment, unauthorized transfer, felony conviction, dishonest conduct, failure to maintain insurance, interference with inspections/audits, unauthorized use of proprietary mixes, or repeated/uncured defaults of agreement provisions. |
| Non-Compete Period | 3 years |
| Non-Compete Details | After expiration or termination, for 3 years, neither franchisee nor its owners may have ownership interest in or perform services for a competitive business at the site, within 10 miles of the site, or within 10 miles of any other Sprinkles Cupcakes Bakery. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Managing Owner must own more than 50% of the ownership interests in the franchisee entity, have authority to direct and control management, and devote sufficient time and attention to the promotion and operation of the Bakery. The Franchise Agreement does not require the Managing Owner to participate personally in the direct, on-premises operation of the Bakery, but it is recommended. A General Manager, approved by the franchisor, must be designated to devote all business time and attention to the on-premises management and operation of the Bakery. |
| Required Suppliers | You must purchase or lease all Operating Assets and other products and services for the Bakery according to the System Standards, and if we require, only from suppliers or distributors that we designate or approve, which may include or be limited to us or our affiliates. Currently, the purchases and leases that you must make from us or our affiliates, from approved suppliers, or according to our System Standards represent approximately 100% of your total purchases and leases in establishing, and approximately 100% of your total purchases and leases in operating, the Bakery. |
| Supply Restrictions | You must purchase all components of the Proprietary Mixes only from the supplier(s) and/or distributor(s) whom we periodically designate, which may be us or our affiliate. You currently must use the development company, architect and/or other contractor whom we designate or approve to design and/or develop the Bakery. You currently also must buy the Computer System, certain Proprietary Mixes and other ingredients, cake mixes, cookie mixes, frosting, decorative icing and decals, other food items, supplies, smallwares, largewares, and retail merchandise only from a designated or approved supplier. You must contract with a supplier we designate for the purchase and service of Cupcake ATMs. At our option, you must contract with one or more suppliers that we designate or approve to develop and/or implement Local Marketing. |
| Franchisor Revenue from Suppliers | We or our affiliates may derive revenue based on your purchases and leases, including from charging you for products and services that we or our affiliates provide to you and from promotional allowances, volume discounts and other payments made to us by suppliers and/or distributors that we designate or approve for some or all of our franchisees. Neither we nor our affiliates received any revenue from selling products or services to Sprinkles Cupcakes Bakery franchisees during 2021. We expect to negotiate arrangements under which suppliers would pay us rebates ranging from 2% to 5% of invoice costs for certain equipment, ingredients and other products that franchisees buy from those suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Sprinkles Franchise Group Franchise Earnings — Item 19
Average Revenue
$3.0M
Median Revenue
$3.1M
Revenue Range
$2.4M – $3.6M
Sample Size
6 units
Past financial performance does not guarantee future results. Individual results will vary.
Sprinkles Franchise Group Litigation & Risk Flags
Clean Litigation RecordSprinkles Franchise Group has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sprinkles Franchise Group System Growth
Total Units
20
Franchised
0
Company-Owned
20
Sprinkles Franchise Group currently operates 0 franchised locations and 20 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 1 | 21 |
| 2020 | 0 | 1 | 20 |
| 2021 | 1 | 1 | 20 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 11 states: California, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Rhode Island, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
0
Net Income
$-96,031
Total Assets
$149K
Audited by Moss Adams LLP for year ending January 2, 2022.
Sprinkles Franchise Group Franchise — FAQ
The total investment to open a Sprinkles Franchise Group franchise ranges from $880,000 to $1,310,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sprinkles Franchise Group charges a royalty fee of 5% of Bakery’s Gross Sales of gross sales, plus a Up to 5% of Gross Sales (Marketing Spending Requirement) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sprinkles Franchise Group Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sprinkles Franchise Group to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sprinkles Franchise Group franchise owners report average revenue of $3.0M and median revenue of $3.1M. This is based on a sample of 6 units. Past performance does not guarantee future results.
Sprinkles Franchise Group has been franchising since 2021. The FDD shows an investment range of $880,000-$1,310,000, a 5% of Bakery’s Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $880,000 to $1,310,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Sprinkles Franchise Group?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sprinkles Franchise Group and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sprinkles Franchise Group or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com