Sprinkles Cupcakes

Sprinkles Cupcakes Franchise FDD, Costs & Fees (2025)

Sprinkles Cupcakes is a bakery franchise known for its gourmet cupcakes. Franchisees benefit from strong brand recognition, proven systems, and a support network for marketing, operations, and customer service.

Sprinkles Cupcakes, founded in 2005 by Candace and Charles Nelson in Beverly Hills, California, is recognized as the world's first cupcake-only bakery. The brand quickly gained fame for its handcrafted, gourmet cupcakes made with premium ingredients like sweet cream butter and Callebaut chocolate.

Today, Sprinkles is headquartered in Austin, Texas, and continues to delight customers with a variety of baked goods, including cakes, cookies, and brownies. In February 2021, Sprinkles began offering franchise opportunities with a focus on Production and Pantry bakery models.

The company targets experienced multi-unit operators to expand its presence across the U.S. and internationally. By the end of 2022, Sprinkles had launched its first franchised location in Riverton, Utah, marking the beginning of a new phase of strategic growth.

Sprinkles stands out through innovation and product quality. It introduced the world's first Cupcake ATM in 2012, allowing customers 24/7 access to fresh cupcakes. The brand also caters to dietary needs with vegan and gluten-friendly options.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Sprinkles Cupcakes offers 2 types of franchises:

Franchise Model Initial Investment Range
Production Bakery $880,000 – $1,310,000
Pantry Bakery $725,000 – $1,215,000

We are summarizing below the main costs associated with opening a Sprinkles Cupcakes Production Bakery.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial franchise fee $40,000
Construction and leasehold improvements $400,000 to $500,000
Architect Fee $25,000 to $50,000
Operating Assets $240,000 to $340,000
Signs $30,000 to $40,000
Cupcake ATM $0 to $80,000
3 months' rent $30,000 to $60,000
Security deposit $5,000 to $25,000
Opening inventory and supplies $40,000 to $50,000
Grand opening marketing $10,000 to $15,000
Training expenses $25,000 to $50,000
Miscellaneous opening costs $5,000 to $10,000
Additional Funds – 3 months $30,000 to $50,000
Total Estimated Initial Investment $880,000 to $1,310,000

Franchise Disclosure Document

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Competitors

Below are some of

Sprinkles Cupcakes

key competitors in the

Baked Goods

sector.

Started franchising
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Franchise fee

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Royalty fee

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Sprinkles Cupcakes
2021
4
+
n.a.
n.a.
$40,000
5.00%

$725,000

-

$1,310,000

n.a.

$1,796,000

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79.0%

n.a.

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22.2%

n.a.

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2006
154
+
-7%
-7%
$30,000
n.a.

$37,000

-

$186,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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1998
24
+
-14%
-14%
$25,000
6.00%

$122,000

-

$339,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2004
146
+
-3%
-3%
$35,000
6.00%

$135,000

-

$407,000

Upgrade

n.a.

$471,000

74.0%

n.a.

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n.a.

n.a.

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No
Upgrade
No
Yes
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Yes
2023
0
+
n.a.
n.a.
$55,000
6.00%

$235,000

-

$712,000

Upgrade

n.a.

$579,000

76.0%

n.a.

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n.a.

n.a.

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No
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No
No
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No
2021
1
+
n.a.
n.a.
$40,000
6.00%

$660,000

-

$1,021,000

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n.a.

$3,145,000

63.3%

n.a.

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n.a.

n.a.

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No
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No
No
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No
2006
32
+
-18%
-18%
$40,000
5.00%

$1,090,000

-

$2,335,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

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Revenue growth (last 3 years)

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Profit margin

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Franchise Disclosure Documents
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Priority support

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Training

Sprinkles Cupcakes provides a comprehensive training program to ensure franchisees operate according to brand standards. The training structure includes several mandatory and optional components designed to support both the pre-opening phase and ongoing operations.

  1. Initial Training Program
    The Initial Training Program is mandatory for the Managing Owner, General Manager, and two assistant managers. It includes classroom instruction, hands-on training at a certified Sprinkles Cupcakes Bakery, remote training, and self-study modules. This training must be completed to the franchisor’s satisfaction before the bakery opens.
  2. Certified Training Bakery Program
    Franchisees must complete brand standards training and meet certain benchmarks within 180 days of opening to become a Certified Training Bakery. This designation allows one of the bakery's personnel to serve as a Certified Training Manager responsible for internal staff training.
  3. Ongoing Training and Conventions
    Sprinkles may require franchisees and key personnel to attend ongoing training sessions and evaluation programs. These can be delivered in-person, virtually, or through other specified methods, with attendance often being mandatory for conventions and programs.

Territory Protection

Sprinkles Cupcakes grants its franchisees a defined "Territory," which is outlined in an exhibit to the Franchise Agreement. This Territory can range from a few city blocks to an entire state, depending on local market factors such as demographics and population density.

As long as the franchisee complies with the agreement, the franchisor and its affiliates will not open or authorize another Sprinkles Cupcakes Bakery with a physical presence within that Territory.

However, this protection is not absolute. Sprinkles Cupcakes reserves the right to operate in non-traditional locations within the Territory, such as airports or stadiums, and to sell through other channels like the Internet and catalog sales.

Number of units

2024
Franchised units

0

1

4

Company-owned units

20

22

20

Total units

20

23

24

Competitors

Aunt Millies Bakeries

Franchisees

?

154
+
-7%
-7%
Investment

?

$37,000 - $186,000

The Pretzel Twister

Franchisees

?

24
+
-14%
-14%
Investment

?

$122,000 - $339,000

Philly Pretzel Factory

Franchisees

?

146
+
-3%
-3%
Investment

?

$135,000 - $407,000

Bang Cookies

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$235,000 - $712,000

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