Sprinkles Cupcakes
Sprinkles Franchise Holdings, LLC
Company Information
7710 Rialto Blvd Suite 150 Austin, Texas 78735
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.
Not Available
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Franchise Rating
Franchimp Summary Rating
6/10
Earning Transparency
10/10
Investment Accessibility
1/10
Summary of potential earnings
$1,957,283 / unit
Average Gross Profit During 2021Baked Goods
$2,384,110 / unit
Average Revenue During 2021Baked Goods
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $40,000 Maximum: $43,250
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $880,000 Maximum: $1,310,000
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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