Sprinkles Cupcakes: Innovating the Gourmet Dessert Experience

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.

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.
4. Pre-Opening Training Team
   For the first two bakeries opened by a franchisee, Sprinkles sends a specialized training team to assist during the launch. This support is crucial in ensuring a successful opening and adherence to operational standards.

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.