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.
KEY FRANCHISE STATS
Franchisees
?
4
+
n.a.
n.a.
Franchise fee
?
$40,000
Investment
?
$725,000 - $1,310,000
Revenue (AUV)
?
Undisclosed
$1,796,000
+
n.a.
n.a.
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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
The initial investment required for a Sprinkles Cupcakes franchise is
$725,000 - $1,310,000.
That is the total cost you would need to finance 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
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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
Below is Sprinkles Cupcakes's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Sprinkles Cupcakes had 24 total units in 2024, of which 4 were franchised-owned and 20 company-owned.
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.
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.
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.
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.
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