About Sprinkles Cupcakes Franchise
Sprinkles Cupcakes is a celebrated bakery franchise featuring handcrafted cupcakes, cookies, brownies, and specialty baked goods created using the brand's distinctive recipes and preparation techniques.
The franchise fee is $40,000, and the brand has been franchising since 2021 under Sprinkles Franchise Holdings, LLC.
Each Sprinkles bakery delivers the premium, artfully decorated products that have earned the brand a devoted national following.
Sprinkles Cupcakes 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 Bakery’s Gross Sales (Brand Fund contribution, if established, and Advertising Cooperative contributions, if established) | 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 Bakery’s Gross Sales (Brand Fund contribution, if established, and Advertising Cooperative contributions, if established)) 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), could increase if costs increase |
| Audit Fee | Cost of audit (if franchisee fails to timely furnish reports or understates Royalty or Brand Fund contributions by 2% or more) |
| Marketing Spending Requirement shortfall | Difference between Marketing Spending Requirement and amount you spent |
| Guest services phone support fees | Currently $1.25 per call, but could increase if our costs increase |
| One-off menu updates | Currently $100 per hour |
| Ongoing training fees | Currently $0 to $2,500 per year, but could increase if our costs increase |
| Operations Manual replacement fee | $500 |
| Supplier review fees | Currently $1,500, but could increase if our costs increase |
| Product review fees | Currently $1,500, but could increase if our costs increase |
| 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 | Our reasonable costs incurred in your relocation, currently we estimate $2,500 to $10,000 but could increase if our costs increase |
| 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, but could increase if costs increase |
| Liquidated damages | Average monthly Royalties and Brand Fund contributions that you owed during the 12 months before the month of termination (or the shorter period during which the Bakery operated) multiplied by 36 or the number of months remaining in the 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 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 | The Territory is defined in an Exhibit to the Franchise Agreement using geographic boundaries such as counties, cities, zip codes, or city blocks. Its size depends on market characteristics like demographics, traffic flow, boundaries, competition, and population density. The franchisor and its affiliates retain the right to operate or authorize others to operate Sprinkles Cupcakes Bakeries at Non-Traditional Locations within the Territory, and at any locations outside the Territory. |
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 (currently $20,000) |
| Renewal Conditions | Franchisee must have substantially complied with the agreement, provide written notice, demonstrate right to maintain possession of the site for at least 10 years, and have renovated/remodeled 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 (currently $10,000) (control transfer) |
| Transfer Conditions | Approval is conditioned on compliance with agreements, notice, payment of transfer fee, signing a general release, transferee meeting franchisor's standards, transferring owners agreeing to non-compete, and new ownership structure documentation. For control transfers, new management personnel must complete training, and the Bakery/Site may require upgrades. For Pantry Bakeries, transfer may be conditioned on simultaneous transfer of an affiliated Production Bakery. |
| Termination for Cause | Termination can occur for material misrepresentation/omission, failure to complete training, failure to sign lease/open Bakery on time, abandonment of operation, unauthorized transfer of control, felony conviction, dishonest/unethical/illegal conduct, failure to maintain insurance, interference with inspections/audits, unauthorized transfer, failure to maintain affiliated Production Bakery (for Pantry Bakeries), unauthorized distribution of Proprietary Mixes, termination of other agreements, breach of non-compete/confidentiality, violation of law/unsafe operation, repeated defaults, insolvency/bankruptcy, failure to pay amounts due. |
| Non-Compete Period | 3 years |
| Non-Compete Details | For 3 years after termination or expiration, neither franchisee nor its owners/immediate families may have ownership interest in or perform services for a Competitive Business (defined as generating 20% revenue from similar products or granting franchises for such businesses) at the Site, within a 10-mile radius of the Site, or within a 10-mile radius of any other Sprinkles Cupcakes Bakery then operating or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, an approved Managing Owner must own more than 50% of ownership interests, have authority to direct and control management, and devote sufficient time and attention to the promotion and operation of the Bakery. While personal on-premises operation is recommended, it is not required for the Managing Owner. An approved General Manager must be designated to serve as the Bakery’s general manager and devote all business time to on-premises management and operation. |
| 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. 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. |
| Supply Restrictions | We may limit the number of approved suppliers with whom you may deal, designate sources that you must use, and/or refuse any of your requests for any reason, including if we have already designated an exclusive source (which might be us or our affiliate) for the applicable product or service or if we believe that doing so is in the best interests of the Sprinkles Cupcakes Bakery network. |
| Franchisor Revenue from Suppliers | 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 Cupcakes Franchise Earnings — Item 19
Average Revenue
$2.4M
Median Revenue
$2.4M
Revenue Range
$1.8M – $3.0M
Sample Size
17 units
Past financial performance does not guarantee future results. Individual results will vary.
Sprinkles Cupcakes Litigation & Risk Flags
Clean Litigation RecordSprinkles Cupcakes 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 Cupcakes System Growth
Total Units
20
Franchised
0
Company-Owned
20
Sprinkles Cupcakes 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: 3
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
0
Net Income
$-96,031
Total Assets
$149K
Audited by Moss Adams for year ending January 2, 2022.
Sprinkles Cupcakes Franchise — FAQ
The total investment to open a Sprinkles Cupcakes 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 Cupcakes charges a royalty fee of 5% of Bakery’s Gross Sales of gross sales, plus a Up to 5% of Bakery’s Gross Sales (Brand Fund contribution, if established, and Advertising Cooperative contributions, if established) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sprinkles Cupcakes 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 Cupcakes to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sprinkles Cupcakes franchise owners report average revenue of $2.4M and median revenue of $2.4M. This is based on a sample of 17 units. Past performance does not guarantee future results.
Sprinkles Cupcakes 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. A minimum of $30,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Sprinkles Cupcakes?
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 Cupcakes 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 Cupcakes or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com