Facebook
Mandatorynkles 2023 FDD EAST\199441920.3 31 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
+15% units YoYHQ-led decisions
Sprinkles - Renewals in NY and IL
Retail foodSoftware purchasing at Sprinkles is controlled by Daniel Legh-Page, Vice President of Technology, at the brand's Texas headquarters. The franchise currently mandates Oracle MICROS POS, a proprietary Sprinkles Web Platform, and a Cupcake ATM system across its 23-unit network. With only 1 franchised location and 22 company-owned, the addressable market for vendor sales is tightly concentrated at the corporate level.
For software vendors selling into US franchise brands.
Live signals
Total units
23
1 franchised
Unit growth YoY
+15%
vs prior filing
AUV
$2.14M
Item 19, 2022
Royalty
5%
of gross sales
Ad fund
2%
national + local
Initial fee
$40K
per unit
Investment range
$725K–$1.38M
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
3 years
from the filing
Item 19
Claims
from the filing
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 (FY2023)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
Instagram
ommon 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
MICROS
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
Pinterest
rning 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
Twitter
policies 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
22 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 8 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.
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
Sprinkles operates 23 total units, 22 of which are company-owned and just 1 franchised. That corporate-heavy structure means software vendors are effectively selling into a single buyer: the headquarters in Texas. The brand posted 15% year-over-year unit growth, and average unit volume sits at $2,138,044. For a retail food concept, that AUV signals healthy per-location revenue that can support technology investment. The renewal focus in New York and Illinois suggests those markets are active for lease and contract cycles, which often align with software evaluation windows.
Who controls software purchasing
The named technology buyer is Daniel Legh-Page, Vice President of Technology. He reports into a leadership team that includes CEO and President Dan Menches, CMO Michelle Wong, SVP of Operations Justin Murakami, and VP of Culinary Charles Craig. Because Sprinkles is part of Sprinkles Franchise Holdings, LLC, any enterprise-level procurement may also involve holding-company oversight. For a vendor, the path starts with the VP of Technology, but operational and marketing stakeholders will influence tools that touch in-store execution or customer experience.
Mandated and current tech stack
The 2023 FDD mandates five systems. Oracle MICROS by Oracle is the required point-of-sale software. The Sprinkles Web Platform and System Website are proprietary, covering online ordering and brand web presence. The Cupcake ATM is a custom kiosk system unique to Sprinkles, handling automated pickup. No other third-party software mandates appear in the FDD. This stack leaves whitespace for vendors in areas like inventory management, labor scheduling, loyalty, or business intelligence—provided they can integrate with Oracle MICROS and the proprietary web layer.
Procurement, renewals, and timing
Item 8 of the FDD does not disclose a designated supplier or approved-supplier framework, meaning the procurement model is not publicly defined. Vendors should expect a direct corporate sales process. Renewal terms in Item 17 show a 10-year extension is available if the franchisee complies with the agreement, provides written notice, demonstrates site possession rights for at least 10 years post-expiration, and renovates to current standards. With only one franchised unit, most contract events will be corporate-driven. The 15% unit growth rate suggests new bakery openings are the most likely trigger for technology evaluation.
How to read the Sprinkles FDD
The 2023 FDD is embedded below. For software vendors, the critical sections are Item 11 (mandated systems, including Oracle MICROS and the proprietary platforms) and Item 17 (renewal conditions that signal when existing locations may refresh their tech stack). Item 1 lists the executive team, giving you the names and titles of potential buyers. Item 8, while sparse here, is always worth checking for supplier restrictions. Use the document to confirm the 23-unit footprint and corporate ownership concentration before building a prospecting list.
For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize based on tech mandates, growth rates, and buyer access.
Questions vendors ask
Sprinkles - Renewals in NY and IL, answered from the filing
Daniel Legh-Page, Vice President of Technology, leads technology decisions. The C-suite includes CEO Dan Menches and CMO Michelle Wong, but the VP of Technology is the most direct buyer for software vendors.
The 2023 FDD mandates Oracle MICROS point-of-sale software, a proprietary Sprinkles Web Platform, a System Website, and a Cupcake ATM system for all locations.
Sprinkles operates 23 total units: 22 company-owned and 1 franchised. The brand focuses on corporate-owned retail food locations, primarily in NY and IL for renewals.
The most recent FDD does not disclose a specific procurement or designated-supplier framework in Item 8. Vendors should inquire directly about approved-supplier processes at the corporate level.
Franchise agreements run 10 years with renewal terms of 10 additional years, contingent on compliance, site possession, and renovation. With 15% YoY unit growth, new-location tech deployments may create near-term opportunities.
The 2023 FDD was filed with state franchise regulators. You can view the full document in the embedded PDF viewer below for detailed Item 11 tech mandates and Item 17 renewal conditions.
Source
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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
Single-unit2
Top states by locations
| UT | 1 |
|---|---|
| WI | 1 |
Ownership
The portfolio behind Sprinkles - Renewals in NY and IL
single_brand_holdco of Sprinkles Cupcakes.
Related Retail food brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.