About The Cake Slice Franchise
The Cake Slice is a specialty dessert franchise selling homemade butter cake slices, cupcakes, cake bombs, full cakes, and beverages through both carryout and delivery, with catering services also available.
Franchising since 2023, the brand offers two formats: Production Shops (900 to 1,200 square feet with full baking facilities and retail) and smaller Satellite Shops focused primarily on retail sales.
The initial franchise fee is $35,000.
The Cake Slice Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales | National brand fund |
| Total Investment Range | $96,600 – $389,900 | Includes build-out, inventory, working capital |
The investment range of $97K–$390K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Construction and Leasehold Improvements | $10,000 | $200,000 |
| Lease Deposits and Rent – Three Months | $2,200 | $4,000 |
| Furniture, Fixtures, and Equipment | $40,000 | $60,000 |
| Signage | $3,000 | $6,500 |
| Computer, Software, and Point of Sale System | $3,400 | $4,400 |
| Grand Opening Marketing | $1,000 | $2,500 |
| Initial Inventory | $1,500 | $3,000 |
| Utility Deposits | $0 | $500 |
| Insurance Deposits – Three Months | $0 | $500 |
| Travel for Initial Training | $2,000 | $5,500 |
| Professional Fees | $7,000 | $15,000 |
| Licenses and Permits | $1,500 | $3,000 |
| Additional Funds – Three Months | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Up to $500 per month, currently not assessed |
| Audit Fee | Cost of audit |
| Franchisee Directed Local Marketing | 2% of Gross Sales |
| POS System | 3% per sales transaction |
| Online Ordering, Customer Rewards, and Gift Cards | As invoiced and as incurred (currently not implemented) |
| Local and Regional Advertising Cooperatives | Up to 2% of monthly Gross Sales, currently not assessed |
| Annual Conference Attendance Fee | Not greater than $1,500 |
| Additional Employee Initial Training | $300 per person per day |
| Supplemental On-Site Training | $300 per day plus expenses |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Quality Assurance Audit | Actual costs incurred by us or fees designated by us |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee or Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance (breach of agreement) | Actual fees, costs, and expenses |
| Supplier Evaluation | Actual fees, costs, and expenses |
| Management Service | Actual costs incurred by us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximate two-week period |
| Classroom Training | 18 |
| On-the-Job Training | 62 |
| Training Location | Reno, Nevada, your Shop Location, or virtually |
| Additional Training | Supplemental training may be required for you and your Operating Manager, at a cost of $300 per on-site trainer per day, plus travel, meals, and accommodation expenses. Initial training for additional employees is $300 per person per day. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | a distance of one mile from the Shop Location in all directions travelable by road, but may be smaller based on population density, demographics, and geographical boundaries. |
| Description | Designated Territory identified by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations. Franchisor reserves the right to operate or grant franchises outside this territory and in 'Captive Markets' within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 consecutive years |
| Renewal Term | one additional 10 year term |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, the franchisee must be in compliance with the Franchise Agreement, provide 180 days written notice, sign the then-current Franchise Agreement and related agreements, sign a general release, pay a $10,000 renewal fee, remodel and upgrade the Shop to current standards, secure legal right to occupy the premises, and ensure Owners comply with their agreements and personally guarantee the new terms. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Transfers require franchisor's prior written consent. Conditions include: 30 days prior written notice, franchisee and owners in substantial compliance, all monetary and other obligations satisfied, transferee meets franchisor's qualifications (good moral character, business experience, financial resources), transferee and spouses sign guarantee, general release signed, transfer of approved location and assets, transferee and managers complete training, payment of $15,000 transfer fee, franchisor approval of terms, and transferee employees sign confidentiality agreements. |
| Termination for Cause | Franchisor can terminate for various defaults, some automatically without cure period (e.g., insolvency, bankruptcy, false statements, unauthorized transfer, felony conviction, abandonment, injurious activity), and others with a 10-day or 30-day cure period (e.g., failure to pay fees, failure to comply with operational standards, failure to obtain lease/open shop, underreporting Gross Sales by 5% or more). |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise, no involvement in any competitive business. After termination or expiration, for 24 months, no involvement in a competitive business within the Designated Territory, a 25-mile radius of the Designated Territory, or a 10-mile radius of any other The Cake Slice Shop. Also includes confidentiality, non-disclosure, and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner (designated managing shareholder, member, or partner) must be personally responsible for the management and overall supervision of the Shop. While personal day-to-day participation is recommended, an approved Operating Manager may be hired to supervise and manage on-site operations. If multiple Shops are owned, each must be managed and supervised on-site by an Operating Manager. |
| Required Suppliers | Franchisees must purchase or lease certain source restricted goods and services that meet franchisor specifications or are from approved/designated suppliers. These include: Lease (with specific rider and collateral assignment), System Supplies (initial and ongoing inventory), branded Furniture and Fixtures (unbranded can be from any supplier if meeting specs), Signage, Point of Sale System and Computer Equipment, Credit Card Processing, and Online Ordering, Customer Rewards, and Gift Card systems. |
| Supply Restrictions | Franchisor may designate itself or its affiliates as exclusive suppliers. Custom Cakes by Kitchen, LLC (an affiliate) is currently an approved supplier of cake mixes. Franchisor may designate a single supplier for any services, products, equipment, supplies, or materials, including System Supplies, and require exclusive use. |
| Franchisor Revenue from Suppliers | Franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. As of the Issuance Date, no revenue has been received from franchisee purchases. |
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 other obligation. |
The Cake Slice Franchise Earnings — Item 19
The Cake Slice does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Cake Slice Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Cake Slice System Growth
The Cake Slice currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 2 |
| 2021 | 1 | 1 | 2 |
| 2022 | 0 | 0 | 2 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Zokpia Accounting & Consulting for year ending December 31.
The Cake Slice Franchise — FAQ
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