🍟 01/30/2025 – Building Connections Through Cupcakes

Sprinkles

Fast Facts

Background

  • HQ: Austin, TX
  • Founded in 2005, franchising since 2011
  • Sprinkles is a cupcake bakery that specializes in cupcakes and other pastries.

Franchise Fees

  • Royalty: 5%
  • Brand Fund: 2%
  • Franchise Fee: $40,000

Financial Overview

  • The below table discloses information on 18 affiliate owned Sprinkles locations that were open and operating for the full 2022 fiscal year, from January 3, 2022 to January 1, 2023.

The Wolf’s Take 🍟

After being founded in 2005 and hitting the franchise scene in 2011, Sprinkles has definitely made a name for themselves in the baked goods industry. They tend to eye non-traditional spots like airports and college campuses, which could amplify their visibility and reach in some unique ways.

They’ve got a royalty rate of 5%, a brand fund contribution of 2%, and a franchise fee of $40,000. That’s pretty standard in the franchise world, but what sets Sprinkles apart is their strategy.

They’re not just casting a wide net—they’re selective about who they bring into their franchise family. They’re looking for those who aren’t just in it for the trend but who share their core values of passion, quality, and innovation.

In essence, if you’re a multi-unit operator with a knack for dynamic markets and a drive to spread some joy, Sprinkles could be a golden opportunity. They’re not just baking cupcakes; they’re crafting experiences, and they want partners who get that ethos. Sounds pretty sweet, right?

Resources

Aldi’s Growth – Michael Girdley

Michael Girdley’s breakdown of Aldi is succinct and does a good job of explaining how they keep their costs low, which is particularly interesting compared to the rising cost of most grocery chains.

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