About Sprinkles - Renewals in Franchise
Sprinkles Cupcakes is a premium bakery franchise known for handcrafted cupcakes, cookies, brownies, and other baked goods, all prepared according to the brand's signature recipes and standards.
The franchise fee is $40,000, and the brand has been franchising since 2021 under Sprinkles Franchise Holdings, LLC.
This filing covers franchise renewals in New York and Illinois.
Sprinkles - Renewals in 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 | Currently 2% of the Bakery’s Gross Sales | 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 (Currently 2% of the Bakery’s Gross Sales) 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 |
| Audit Fee | Cost of audit |
| Advertising Cooperative contributions | If established, the amount the cooperative periodically establishes, subject to the Marketing Spending Requirement |
| 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 | 38 hours classroom, 322 hours on-the-job, plus 3 weeks pre-opening training team support and Certified Training Bakery certification within 180 days. |
| Classroom Training | 38 |
| On-the-Job Training | 322 |
| Training Location | Certified Training Bakeries, currently expected in Dallas, Texas |
| Additional Training | Ongoing training may be required periodically, with reasonable fees charged. |
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 | Defined by geographic boundaries (counties, cities, zip codes, city blocks), depending on market characteristics. Franchisor may operate or authorize others to operate Sprinkles Cupcakes Bakeries at Non-Traditional Locations within 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 |
| Renewal Conditions | Substantial compliance with agreement, written notice 12-15 months before term end, demonstration of right to maintain possession of site for 10 years, renovation/remodeling to current requirements, sign current form of agreement and general release. |
| Transfer Fee | $2,500 (non-control transfer); 25% of the then current initial franchise fee (control transfer) |
| Transfer Conditions | Compliance with agreements, written notice 30 days before transfer, transferee meets franchisor standards, transferring owners agree not to use Marks or compete, new ownership structure reflected, payment of transfer fee. For Pantry Bakeries, simultaneous transfer of affiliated Production Bakery may be required. |
| Termination for Cause | Material misrepresentation/omission, failure to complete training, failure to sign lease/open bakery on time, abandonment of bakery, unauthorized transfer, felony conviction, dishonest/unethical/illegal conduct, failure to maintain insurance, interference with inspections/audits, unauthorized Proprietary Mixes use/distribution, termination of other agreements, breach of non-compete/confidentiality, violation of law/unsafe operation, failure to pay amounts due, repeated defaults, bankruptcy. |
| Non-Compete Period | 3 years |
| Non-Compete Details | During term: no owning interest in, providing services for, loaning/leasing to, or diverting business/customers to a competitive business. After term: for 3 years, no owning interest in or providing 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 | Yes |
| Participation Details | If an entity, an approved "Managing Owner" must own >50% of ownership interests, have authority to direct/control management, and devote sufficient time to promotion/operation. A "General Manager" must devote all business time to on-premises management/operation. |
| Required Suppliers | Yes |
| Supply Restrictions | Franchisees must purchase or lease all Operating Assets and other products and services according to System Standards, and if required, only from designated or approved suppliers (which may include the franchisor or its affiliates). Production Bakeries must purchase all components of Proprietary Mixes from designated suppliers. Pantry Bakeries must acquire all Proprietary Mixes only from a Production Bakery owned by the franchisee or its affiliate. |
| Franchisor Revenue from Suppliers | Yes, franchisor or affiliates may derive revenue from franchisee purchases/leases, including promotional allowances, volume discounts, and other payments from designated/approved suppliers. |
Sprinkles - Renewals in Franchise Earnings — Item 19
Average Revenue
$2.1M
Median Revenue
$2.0M
Revenue Range
$787K – $3.2M
Sample Size
18 units
Past financial performance does not guarantee future results. Individual results will vary.
Sprinkles - Renewals in Litigation & Risk Flags
Clean Litigation RecordSprinkles - Renewals in 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 - Renewals in System Growth
Total Units
23
Franchised
1
Company-Owned
22
Sprinkles - Renewals in currently operates 1 franchised locations and 22 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 1 | 20 |
| 2021 | 0 | 0 | 20 |
| 2022 | 3 | 0 | 23 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$4K
Net Income
$-132,093
Total Assets
$299K
Audited by MOSSADAMS for year ending January 1, 2023.
Sprinkles - Renewals in Franchise — FAQ
The total investment to open a Sprinkles - Renewals in 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 - Renewals in charges a royalty fee of 5% of Bakery’s Gross Sales of gross sales, plus a Currently 2% of the Bakery’s Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sprinkles - Renewals in 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 - Renewals in to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sprinkles - Renewals in franchise owners report average revenue of $2.1M and median revenue of $2.0M. This is based on a sample of 18 units. Past performance does not guarantee future results.
Sprinkles - Renewals in 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.
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