6/10

Franchimp Summary Rating

1 /10
Higher than 95% of peers

Franchise Summary

Description
Sprinkles Cupcakes, founded in 2005 by Candace Nelson in Beverly Hills, is a renowned bakery franchise famous for its gourmet cupcakes and innovative features like the cupcake ATM, allowing 24/7 access to its treats. With a diverse range of flavors and a focus on high-quality ingredients, Sprinkles has expanded its presence across the U.S. and internationally, becoming a beloved destination for dessert enthusiasts.
Corporate Structure
We are a limited liability company organized in Delaware on August 10, 2020. We do business under the name Sprinkles Cupcakes. We first started offering franchises as of the date of this disclosure document. We have never operated Sprinkles Cupcakes Bakeries or offered franchises in any other line of business, but our related companies and their principals have operated Sprinkles Cupcakes Bakeries since 2005. We have no other business activities except those described here. Our principal business address is at 7710 Rialto Blvd Suite 150, Austin, Texas 78735. If we have an agent for service of process in your state, we disclose that agent in Exhibit A.

Earnings Transparency

10 /10
This Franchise discloses far more about the financial performance of their franchisees compared to other franchises in the same industry.

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Stand-Alone" Units

Average Revenue Per Unit

Compared vs. Baked Goods Industry

$2,384,110 / unit

Franchise Type: Stand-Alone

Average Revenue During 2021

$2,384,110
$291,171
Industry Low
$2,384,110
Industry High

Average Gross Profit Per Unit

Compared vs. Baked Goods Industry

$1,957,283 / unit

Franchise Type: Stand-Alone

Average Gross Profit During 2021

$1,957,283
$1,731,413
Industry Low
$1,957,283
Industry High

Financial Performance of "Texas Bakeries" Units

Average Revenue Per Unit

Compared vs. Baked Goods Industry

$2,151,149 / unit

Franchise Type: Texas Bakeries

Average Revenue During 2021

$2,151,149
$291,171
Industry Low
$2,384,110
Industry High

Average Gross Profit Per Unit

Compared vs. Baked Goods Industry

$1,731,413 / unit

Franchise Type: Texas Bakeries

Average Gross Profit During 2021

$1,731,413
$1,731,413
Industry Low
$1,957,283
Industry High

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Sprinkles Cupcakes Franchise System Development in 2022

FAQ

How much investment do I need to start my own Sprinkles Cupcakes business?
Franchisees typically require at least $880 to $1 investment to get their Sprinkles Cupcakes business started
What are the initial franchise fees for Sprinkles Cupcakes?
Franchisees typically need to pay at least $40 in fees directly to Sprinkles Cupcakes in order to earn the right to launch their business
How much money can I make with a Sprinkles Cupcakes franchise? What are the average revenues for a typical Sprinkles Cupcakes business?
We estimate that the average revenue of an individual Sprinkles Cupcakes unit is approximately $2,384,110. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Sprinkles Cupcakes unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

1 /10
The Franchisor's investment costs ranges from $880,000 to $1,310,000 which is Much Higher than the $0 to $0 average in the Baked Goods industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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