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Sprinkles Cupcake

Sprinkles Cupcake

Sprinkles Cupcakes franchises bakeries that feature handcrafted cupcakes, cookies, brownies, and other premium baked goods prepared according to proprietary recipes, system standards, and procedures. Franchisees operate either Production Bakeries, which produce proprietary mixes, or Pantry Bakeries, which source mixes from approved Production Bakeries, and must provide delivery services. The business model involves selling these desserts to the general public in a competitive market with other local, regional, and national bakeries.

Since 2021Food & BeverageAustin, TXSprinkles Franchise Holdings, LLCwww.sprinkles.com
2024 FDDItem 19 AvailableSBA Loan Data

Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.

Overview

Investment
$725,000 - $1,310,000
Franchise Fee
$40,000
Locations
4

Financial Requirements

Franchise Fee$40,000
Initial Investment Range$725,000 - $1,310,000
Royalty Rate5.00%
Brand Fund2.00%
Fixed Monthly Fees$300 - $300

5% royalty + 2% brand fund + $300/mo web platform fee

Franchise Stats

Franchise Locations4
Corporate Locations20
States Operating4
Franchising Since2021
FDD Year2024

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$1,862,890
Median Gross Revenue
$1,795,788
EBITDA Margin
21.40%
Top Quartile Revenue
$2,512,665
Bottom Quartile Revenue
$1,277,550
Average Net Profit
$594,500
Average Gross Profit
$1,468,954
Average EBITDA
$403,542

Data Based On: Data based on 18 affiliate-operated Sprinkles Cupcakes Bakeries ('Covered Bakeries') open for the full 2023 Fiscal Year. Gross Sales are for all 18. Gross Profit, Controllable Profit, and EBITDAR are weighted averages from 8 of these 18 bakeries (4 Stand-Alone and 4 Texas Tandem).

* Weighted average gross revenue calculated from 3 tiers of 6 bakeries each: (6 units × $2,512,665 + 6 units × $1,798,454 + 6 units × $1,277,550) / 18 total units = $1,862,890 Median gross revenue taken as the median of the middle third segment: $1,795,788 Revenue top quartile taken as the average of the top third segment: $2,512,665 Revenue bottom quartile taken as the average of the bottom third segment: $1,277,550 Weighted average gross profit calculated from 4 Stand-Alone Bakeries and 4 Texas Tandem Bakeries: (4 units × $1,437,163 + 4 units × $1,500,744) / 8 total units = $1,468,954 Weighted average net profit (Controllable Profit) calculated from 4 Stand-Alone Bakeries and 4 Texas Tandem Bakeries: (4 units × $587,485 + 4 units × $601,515) / 8 total units = $594,500 Weighted average EBITDAR calculated from 4 Stand-Alone Bakeries and 4 Texas Tandem Bakeries: (4 units × $403,777 + 4 units × $403,307) / 8 total units = $403,542 EBITDAR margin calculated as weighted average EBITDAR ($403,542) / weighted average gross sales for the 8 bakeries ($1,887,393) = 0.214 Estimated profit range using the overall average gross revenue of $1,862,890 and the range of EBITDAR margins (20.6% to 22.2%) from the Stand-Alone and Texas Tandem Bakeries. Low estimate: $1,862,890 * 20.6% = $383,755. High estimate: $1,862,890 * 22.2% = $413,562.

Extracted Item 19 Section

How Sprinkles Cupcake Compares to Other Coffee & Bakery Franchises

Key Insights

  • Higher investment than 84% of Coffee & Bakery franchises
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
Sprinkles Cupcake
Current
$725K - $1.3M$40K5.0%4
PANERA BREAD BAKERY-CAFÉ$633K - $4.9M$35K5.0%1,112
SCOOTER'S COFFEE$955K - $1.5M$40K6.0%825
NOTHING BUNDT CAKES$667K - $1.0M$45K6.0%643
GREAT AMERICAN COOKIES$341K - $463K$25K6.0%395
7 BREW$894K - $2.2M$35K4.5%297
Coffee & Bakery Average
37 franchises
$498K - $1.1M$40K5.5%-

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 37 Coffee & Bakery franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States by Outlet Count
1CA
2
2TX
1
3UT
1

SBA Loan History

Historical SBA 7(a) loan data for Sprinkles Cupcake franchisees (2024 - 2024)

Total Loans
1
Average Loan Amount
$1,080,000
Total Loan Volume
$1,080,000
Default Rate
0.0%

Loans by Year

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
0
System Transfers
0
Sold to Franchisees
2
Projected New Franchises
0

Frequently Asked Questions

How much does it cost to open a Sprinkles Cupcake franchise?

The total initial investment to open a Sprinkles Cupcake franchise ranges from $725,000 to $1,310,000. This includes a franchise fee of $40,000. Ongoing royalty fees are 5.0% of gross sales.

How much revenue does a Sprinkles Cupcake franchise make?

According to the 2024 FDD, the average gross revenue for a Sprinkles Cupcake franchise is $1,862,890. The median revenue is $1,795,788.

How much profit can you make with a Sprinkles Cupcake franchise?

Based on the financial performance data in the FDD, estimated profit for a Sprinkles Cupcake franchise ranges from $383,755 to $413,562 per year. Actual results vary based on location, management, and market conditions.

How many Sprinkles Cupcake franchise locations are there?

As of the 2024 FDD, Sprinkles Cupcake has 4 franchise locations. The company has been franchising since 2021.

Can you get an SBA loan for a Sprinkles Cupcake franchise?

Yes, SBA loans are available for Sprinkles Cupcake franchises. Historical data shows 1 SBA 7(a) loans have been approved for Sprinkles Cupcake franchisees, with an average loan amount of $1,080,000. The historical default rate is 0.0%.

Is Sprinkles Cupcake a good franchise to buy?

Sprinkles Cupcake shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Interested in Sprinkles Cupcake?

Talk to a franchise advisor to get personalized guidance and learn if Sprinkles Cupcake is the right fit for you.

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