Franchise Agreement – Section 7.F) Social Media You must comply with our policies and requirements, which we may periodically modify, concerning blogs, common social networks like Facebook, profession
From the filings
Sprinkles Cupcakes
Retail foodSprinkles Cupcakes runs 24 bakeries — mostly company-owned at 20 of 24 — with a named Director of IT in its 2024 FDD's officer roster, making this a centralized, HQ-run buying decision. Oracle MICROS is already in use for POS, while Facebook, Instagram, Pinterest and Twitter/X are named without being required. At a $1,862,223 average unit volume and 5% royalty, unit count grew 300% year over year.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
7%of gross sales (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
mmon social networks like Facebook, professional networks like Linked-In, live- blogging tools like Twitter, virtual worlds, file, audio and video sharing sites like Pinterest and Instagram, and other
a. It will cost approximately $10,000 to $30,000 to acquire the Computer System hardware and obtain initial licenses for the required software for the Bakery, including $3,500 for Micros point-of-sale
ning blogs, common social networks like Facebook, professional networks like Linked-In, live- blogging tools like Twitter, virtual worlds, file, audio and video sharing sites like Pinterest and Instag
olicies and requirements, which we may periodically modify, concerning blogs, common social networks like Facebook, professional networks like Linked-In, live- blogging tools like Twitter, virtual wor
Franchisor behaviours
What the franchisor requires
23 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 7 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent, unlimited access to all information and data in your Computer System, including continuous independent access to all Customer Data (defined in Item 14).
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
within 15 days after the end of each month, monthly and year-to- date profit and loss and source and use of funds statements and a balance sheet for the Bakery as of the end of the previous month
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesFranchise agreement
During the Term Franchisee must purchase or lease all Operating Assets and other products and services for the Bakery only according to the System Standards and, if SFG requires, only from suppliers or distributors that SFG designates or approves (which may include or be limited to SFG or its affiliates).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
SFG may implement and periodically modify System Standards relating to the System Website and, at SFG’s option, may discontinue all or any part of the System Website, or any services offered through the System Website, at any time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
Neither we nor our affiliates received any payments or other consideration from suppliers during 2023 based on franchisees' purchases from those suppliers.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
100Item 8
Currently, the purchases and leases that you must make from us or our affiliates, from approved suppliers, or according to our System Standards represent approximately 100% of your total purchases and leases in establishing, and approximately 100% of your total purchases and leases in operating, the Bakery.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
For each supplier, distributor, or product you submit for our review, you must pay us a reasonable fee in the amount we periodically specify (currently $1,500) to help cover inspection and evaluation costs.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
at the Bakery that we have not yet evaluated, or purchase or lease any Operating Assets or other products or services from a supplier or distributor that we have not yet approved (for Operating Assets or other products and services that we require you to purchase only from designated or approved suppliers or…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee must comply with SFG's System Standards, other directions from SFG, prevailing industry standards (including payment card industry data security standards), all contracts to which Franchisee is a party or otherwise bound, and all applicable laws and regulations, as any of them may be modified from time to…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
SFG and its designated agents and representatives may at all times, and without prior notice to Franchisee: (a) inspect the Bakery and any aspect of its operations;
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may modify the Operations Manual periodically to reflect changes in System Standards.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must locate the Bakery only at a site we have accepted.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not develop, maintain or authorize any other website, other online presence or other electronic medium (such as mobile applications, kiosks and other interactive properties or technology-based programs) that mentions or describes you, the Bakery or its products or services or that displays any of the Marks.
Is a minimum grand opening advertising spend required?
YesItem 7
You must spend at least $10,000.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
You must at your expense participate in the manner we periodically specify in all advertising, marketing, promotional, customer relationship management, public relations and other brand-related programs that we periodically designate for the Bakery, subject to the Marketing Spending Requirement.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we have established a Cooperative for the geographic area in which the Bakery is located on the date you sign the Franchise Agreement, or if we establish a Cooperative in that area during the Franchise Agreement’s term, you must sign the documents that we require to become a member of the Cooperative and to…
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You currently also must buy the Computer System, certain Proprietary Mixes and other ingredients, cake mixes, cookie mixes, frosting, decorative icing and decals, other food items, supplies, smallwares, largewares, and retail merchandise only from a designated or approved supplier.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Under our current automatic debit program for the Bakery, we will debit your account on or after the Payment Day for the Royalty and Brand Fund contributions.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must also designate an individual as your General Manager.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must obtain Computer System components that we designate and ensure that your Computer System functions properly within 60 days after we deliver notice to you.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent, unlimited access to all information and data in your Computer System, including continuous independent access to all Customer Data (defined in Item 14).
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
If we decide that you or your personnel cannot complete the Initial Training Program to our satisfaction, we may require you or your personnel to attend additional training programs are you expense and for which we may charge reasonable fees.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Your personnel whom we periodically specify also must attend any conventions or other programs that we periodically specify for some or all Sprinkles Cupcakes Bakeries.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisee participate in a customer loyalty or rewards program?Franchise agreement
The vendor opportunity at Sprinkles Cupcakes
Sprinkles Cupcakes operates 24 bakeries under its 2024 FDD, with 20 of the 24 company-owned — a structure that concentrates buying power at headquarters. Average unit volume runs $1,862,223 on a 5% royalty, and unit count grew 300% year over year.
Who controls software purchasing
Item 2 names Daniel Jordan Pecina as Director of Information Technology, the clearest software buying-center contact in the filing. Justin Murakami serves as Chief Operations Officer and President, Deanna Preece as VP of Operations and Franchise Services, Veronica Li as Director of Marketing, and Melissa Dehesa as Director of Human Resources — a full corporate leadership team overseeing a mostly company-run system.
Tech named in the FDD, and what is actually required
Oracle MICROS (Item 11) is in use as the incumbent POS system — the filing describes it in use without making it a contractual requirement. Facebook, Instagram, Pinterest and Twitter/X (all Item 11) are named in the filing but not required of any location.
Procurement, renewals and timing
Item 8 runs a designated-suppliers-only model: franchisees must source Proprietary Mixes and the technology-based learning management system from the franchisor or an affiliate; other purchases may use a proposed alternative supplier, subject to franchisor approval. Item 17 allows one 10-year successor term for franchisees in compliance who provide notice, retain the site, and renovate to then-current standards. With units up 300% year over year, this system is expanding fast, and most vendor conversations will center on new-location rollouts rather than renewal windows.
How to read the Sprinkles Cupcakes FDD
The embedded PDF viewer below carries the full 2024 filing, submitted to state franchise regulators. Item 2 is the fastest way to find the right contact, and Item 8 lays out exactly what must run through the franchisor versus what a vendor can compete for.
Talk to FranCloud for where Sprinkles Cupcakes ranks against other retail-food targets.
Questions vendors ask
Sprinkles Cupcakes, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
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Operator footprint
Who runs the locations
2 operators run 2 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Ownership
The portfolio behind Sprinkles Cupcakes
single_brand_holdco of Sprinkles Cupcakes.
Related Retail food brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.