Sprinkles Cupcakes
Sprinkles Cupcakes offers bakery franchises focusing on cupcakes and other sweet treats, known for their colorful and delicious pastries. Operating in the confectionery industry, it provides a recognizable brand with specified recipes and procedures.
Sprinkles Cupcakes franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of either a Production Bakery or a Pantry Bakery ranges from $725,000 to $1,310,000. This includes $40,000 to $43,250 that must be paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 if the Franchise Agreement is not covered by a Development Rights Agreement. If it is covered, $20,000 of the development fee is applied toward this fee, and you must pay an additional $20,000 when signing the Franchise Agreement. [p.21]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is up to five percent of each store's gross sales [p.152]. For advertising and marketing, franchisees contribute based on a percentage of bakery sales, as required by the franchise agreements, which results in approximately $15,000 in such fees for the year ended December 31, 2023 [p.152].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause, which includes but is not limited to unspecified reasons [p.5]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, and they may have specific conditions attached to such transfers, particularly concerning the simultaneous transfer of related rights like those associated with a Pantry Bakery [p.95].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity to do so [p.5]. Additionally, the franchisor may have other grounds for termination as specified in Section 15.C of the agreement [p.101], which allows them to eliminate the franchisee's rights under certain conditions without terminating the entire agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.41, p.42]. The company can operate Sprinkles Cupcakes Bakeries at Non-Traditional Locations within your Territory and may modify your territorial rights under certain conditions [p.41, p.42, p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides comprehensive initial training for new franchisees, which includes a formal Initial Training Program, on-site pre-opening training, and an online learning management system. Additionally, they offer support to become a Certified Training Bakery. Ongoing support is managed by experienced professionals including Deanna Preece and Lisa Miller, who oversee the training program using the Operations Manual and various training guides as instructional materials [p.38].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, Florida currently has one non-traditional Sprinkles Cupcakes Bakery operating. California previously had one non-traditional outlet that closed during the 2023 fiscal year. The exact number of franchised outlets is not specified in these excerpts, but it can be inferred that there was at least one closure or termination within the last fiscal year. [p.64]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but generally does not make financial performance representations. If you receive any other financial performance information or projections, you should report it to specific contacts as outlined in the FDD [p.61].
What am I restricted to selling, and where must I buy supplies?
You are generally restricted from operating a similar business during the term of the franchise. Regarding sales, you must sell products according to System Standards, though specific items may be sourced exclusively from designated suppliers. As for supplies, you must buy certain items such as Computer Systems, Proprietary Mixes, and other ingredients only from designated or approved suppliers as outlined in the Operations Manual [p.25].