Sprinkles Cupcakes BakeryFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Sprinkles Cupcakes Bakery franchise requires a total initial investment of $725K – $1.3M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $725K – $1.3M
- 39th pct Service Resta…
- Avg gross sales
- $1.4M
- 15th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 24
- 29th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
40% cash-on-cash return (based on EBITDAR). Above the 20% threshold most investors target.
Bottom line
- Total investment $725K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.3M), with an estimated 40% cash-on-cash return (based on EBITDAR).
- Verdict A (Top Quintile) with a risk score of 37/100.
- System growing at 400.0% CAGR over 3 years with 24 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Sprinkles Franchise Group LLC
- Parent company
- Sprinkles Franchise Holdings, LLC
- Incorporated in
- DE
- HQ
- 7710 Rialto Blvd Suite 150, Austin, Texas 78735
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $102K
- vs $295K prior year
Overview
About
Sprinkles franchisees operate upscale cupcake bakeries focused on premium, made-to-order cupcakes with gourmet flavor profiles and decorative designs. Daily operations include baking fresh inventory, managing retail counter sales, fulfilling custom orders and celebrations, maintaining a high-end customer experience, and managing a small team in a typically compact retail footprint.
- CEO
- Justin Murakami
- Headquarters
- TX
- Founded
- 2020
- FDD year
- 2025
- States available
- 7
FDD Item 7 · 2025 filing · 27 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Production Bakery)not refundable | $40K | $40K | |
| Construction and Leasehold Improvements (Production Bakery)not refundable | $400K | $500K | |
| Architect Fee (Production Bakery)not refundable | $25K | $50K | |
| Operating Assets (Production Bakery)not refundable | $240K | $340K | |
| Signs (Production Bakery)not refundable | $30K | $40K | |
| Cupcake ATM (Production Bakery)not refundable | $0 | $80K | |
| 3 Months' Rent (Production Bakery)not refundable | $30K | $60K | |
| Security Deposit (Production Bakery) | $5K | $25K | |
| Opening Inventory and Supplies (Production Bakery)not refundable | $40K | $50K | |
| Grand Opening Marketing (Production Bakery)not refundable | $10K | $15K | |
| Training Expenses (Production Bakery)not refundable | $25K | $50K | |
| Miscellaneous Opening Costs (Production Bakery)not refundable | $5K | $10K | |
| Additional Funds - 3 months (Production Bakery)not refundable | $30K | $50K | |
| Initial Franchise Fee (Pantry Bakery)not refundable | $40K | $40K | |
| Construction and Leasehold Improvements (Pantry Bakery)not refundable | $300K | $450K | |
| Architect Fee (Pantry Bakery)not refundable | $25K | $50K | |
| Operating Assets (Pantry Bakery)not refundable | $210K | $250K | |
| Signs (Pantry Bakery)not refundable | $20K | $30K | |
| Cupcake ATM (Pantry Bakery)not refundable | $0 | $80K | |
| Delivery Vehicle (Pantry Bakery)not refundable | $0 | $60K | |
| Total initial investment | $1.6M | $2.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$159K
11.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $725K – $1.3M
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 2.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $20K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.3M
- Avg ebitdar
- $404K
- Reported as EBITDAR in FDD Item 19
- Cash-on-cash
- 39.7%
- Based on EBITDAR / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 19 units
- vs category median 13
- Range (low → high)
- $742K→$2.5M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Sprinkles Cupcakes Bakery Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.2%
- Company-owned
- 19
- Corporate units in the system
- % franchised
- 21%
- vs corporate-owned
- Net growth (yr3)
- +25.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
- Ceased ops
- 4.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
While unit growth and profitability metrics appear solid, the combination of recent regulatory violations, going concern status, unprotected territory, and high capital requirements creates meaningful investment risk requiring thorough diligence.
Litigation (Item 3)
Desist and Refrain Order from California Department of Financial Protection and Innovation approved December 27, 2024. Violations of California Franchise Investment Law sections 31203 and 31122 for failing to include surety bond for 2023 and 2024 registrations in California. Settlement included $2,000 in administrative penalties and consent order to cease violations.
Largest disclosed settlement: $2,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 37 / 100 rating
- 01HIGHGoing Concern status is False, indicating potential financial instability or undisclosed operational challenges at corporate level
- 02MINORRegulatory violation in California (December 2024) shows compliance failures with franchise registration law and surety bond requirements
- 03MINORZero territorial protection exposes franchisees to direct competition from other Sprinkles locations and potential cannibalization
- 04MINORHigh initial investment range ($725K-$1.31M) combined with 25% YoY unit growth suggests possible oversaturation strategy
- 05MED5% royalty on gross sales provides limited margin cushion given modest 27.8% net margin in financials
- 06MEDRecent regulatory penalty indicates governance gaps that could signal additional undisclosed issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic boundaries (counties, cities, zip codes, or city blocks) |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
Desist and Refrain Order from California Department of Financial Protection and Innovation approved December 27, 2024. Violations of California Franchise Investment Law sections 31203 and 31122 for failing to include surety bond for 2023 and 2024 registrations in California. Settlement included $2,000 in administrative penalties and consent order to cease violations.
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 322 hrs
- Training location
- On-site at Restaurant location
- POS system
- Micros
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Micros
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sprinkles Cupcakes Bakery · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sprinkles Cupcakes Bakery franchise?
The total investment to open a Sprinkles Cupcakes Bakery franchise ranges from $725K – $1.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sprinkles Cupcakes Bakery franchise owners earn?
According to Item 19 of the Sprinkles Cupcakes Bakery FDD, the average gross sales per unit is $1.4M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Sprinkles Cupcakes Bakery's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sprinkles Cupcakes Bakery (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Sprinkles Cupcakes Bakery franchise locations are there?
As of their most recent FDD filing, Sprinkles Cupcakes Bakery has 24 total units in the United States, including 1 franchised units and 19 company-owned units. 1 new units were opened in the latest reporting year.
Is Sprinkles Cupcakes Bakery a good franchise to buy?
FranchiseVerdict rates Sprinkles Cupcakes Bakery as a A-grade franchise with a risk score of 37 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.