Sprinkles Cupcakes Franchise FDD, Profits & Costs (2025)
Sprinkles Cupcakes was launched in 2005 by Candace and Charles Nelson in Beverly Hills, California, and is widely regarded as the pioneer of the cupcake-only bakery concept. The brand rose to prominence for its artisanal cupcakes crafted with premium ingredients such as sweet cream butter and Callebaut chocolate.
Now based in Austin, Texas, Sprinkles has expanded beyond cupcakes to include an assortment of baked treats like cookies, brownies, and cakes. In February 2021, the company introduced franchise opportunities through its Production and Pantry bakery models, opening the door for growth across domestic and international markets.
The franchise program is designed for seasoned multi-unit operators, with the first franchised location opening in Riverton, Utah, by the end of 2022. This milestone signaled the start of Sprinkles’ next stage of expansion.
What sets Sprinkles apart is its commitment to innovation and quality. In 2012, it unveiled the world’s first Cupcake ATM, giving customers round-the-clock access to freshly baked cupcakes. The brand also addresses dietary preferences by offering vegan and gluten-friendly selections.
Initial Investment
How much does it cost to start a Sprinkles Cupcakes franchise? It costs on average between $725,000 – $1,310,000 to start a Sprinkles Cupcakes franchised store.
This investment covers expenses such as bakery construction, equipment, inventory, and initial operating costs. The total amount will vary based on several factors, including the type of bakery model selected (Production or Pantry), the market location, and whether the franchisee decides to lease or purchase the property. Sprinkles Cupcakes offers 2 types of franchises:
| Franchise Model | Initial Investment Range |
|---|---|
| Production Bakery | $880,000 – $1,310,000 |
| Pantry Bakery | $725,000 – $1,215,000 |
We are summarizing below the main costs associated with opening a Sprinkles Cupcakes Production Bakery. For more information on costs required to start a Sprinkles Cupcakes franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $40,000 |
| Construction and leasehold improvements | $400,000 to $500,000 |
| Architect Fee | $25,000 to $50,000 |
| Operating Assets | $240,000 to $340,000 |
| Signs | $30,000 to $40,000 |
| Cupcake ATM | $0 to $80,000 |
| 3 months’ rent | $30,000 to $60,000 |
| Security deposit | $5,000 to $25,000 |
| Opening inventory and supplies | $40,000 to $50,000 |
| Grand opening marketing | $10,000 to $15,000 |
| Training expenses | $25,000 to $50,000 |
| Miscellaneous opening costs | $5,000 to $10,000 |
| Additional Funds – 3 months | $30,000 to $50,000 |
| Total Estimated Initial Investment | $880,000 to $1,310,000 |
Average Revenue (AUV)
How much revenue can you make with a Sprinkles Cupcakes franchise? A Sprinkles Cupcakes franchised store makes on average $1,796,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Sprinkles Cupcakes locations are there?
As of the most recent data, Sprinkles Cupcakes operates 24 bakery locations in total, consisting of 20 company-owned stores and 4 franchised units.
What is the total investment required to open a Sprinkles Cupcakes franchise?
The total investment required to open a Sprinkles Cupcakes franchise ranges from $725,000 to $1,310,000.
What are the ongoing fees for a Sprinkles Cupcakes franchise?
Sprinkles Cupcakes franchisees pay a 5% royalty on gross sales, plus a combined 2% marketing fee (1% for national advertising and 1% for local promotions).
What are the financial requirements to become a Sprinkles Cupcakes franchisee?
To qualify for a Sprinkles Cupcakes franchise, candidates are required to have a minimum net worth of $2 million and at least $1 million in liquid capital. These financial requirements ensure that franchisees have the resources necessary to cover the substantial investment costs associated with opening and operating a Sprinkles bakery.
How much can a Sprinkles Cupcakes franchise owner expect to earn?
The average gross sales for a Sprinkles Cupcakes franchise are approximately $1.8 million per location. Assuming a 15% operating profit margin, $1.8 million yearly revenue can result in $270,000 EBITDA annually.
Who owns Sprinkles Cupcakes?
The Sprinkles Cupcakes franchise is owned by KarpReilly LLC, a private equity firm that acquired the brand in 2014.
Disclaimer
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