Sprinkles Cupcakes Bakery Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Sprinkles is a bakery franchise known for premium cupcakes, plus cookies and its cupcake ATM. Franchisees run the bakeries, managing baking, retail sales, and customer service.
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $725K – $1.3M
- 29th pct Service Resta…
- Avg gross sales
- $1.4M
- Company-owned only7th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 24
- 22nd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $725K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.4M/year (median $1.3M) (company-owned outlets only - not franchisee performance).
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sprinkles Franchise Group LLC
- Parent company
- Sprinkles Franchise Holdings, LLC
- CEO title
- President and COO
- Justin Murakami
- Incorporated in
- Delaware
- 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
- CEO
- Justin Murakami
- Headquarters
- TX
- Founded
- 2020
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 13% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown27 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $725K – $1.3M
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $60K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category 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
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 |
What do units actually make?
Average unit sales run 17% below the full-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2025 · Item 19
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
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Sprinkles Cupcakes Bakery unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
15%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sprinkles Cupcakes Bakery units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.8M purchase
Total debt
$4.6M
SBA $2.9M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 19 outlets
- vs category median 18
- Range (low → high)
- $742K→$2.5M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 805 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.4M/year in gross sales. Revenue-to-investment ratio: 1.4x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 7.0% (near the Full-Service Restaurants average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Sprinkles Cupcakes Bakery Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 19
- Corporate units in the system
- % franchised
- 21%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
- Ceased ops
- 4.2%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 5 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.
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Negative franchisor net worth of -$948,802 despite modest positive net income of $19,044, plus a California Desist and Refrain Order over a missing surety bond ($2,000 penalty). A young franchisor (2021) with only 5 franchised of 24 units, stacking negative equity with a regulatory matter.
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 51 / 100 verdict
- 01MINORNegative net worth -$948,802
- 02MINORItem 3 regulatory: CA Desist and Refrain Order, $2,000 penalty (minor)
- 03MINORThin franchised base: 5 of 24 units
- 04MINORPositive but slim net income $19,044
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 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
5 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. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Sprinkles Cupcakes Bakery FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Sprinkles Cupcakes Bakery FDD and qualifies whose outlets they describe.
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 5 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 B-grade franchise with a verdict score of 51 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.