Wetzel's Pretzels vs Sprinkles Cupcakes Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Wetzel's Pretzels vs Sprinkles Cupcakes including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$126,600 - $405,850 | $576,000 - $1,075,000 |
Franchise Fee |
$35,000 | N/A |
Royalty Fee |
7% | - |
Advertising Fee |
1% | - |
Year Founded |
1994 | 2012 |
Year Franchised |
1996 | 2020 |
Term Of Agreement |
10 years | - |
Term Of Agreement |
10 years | - |
Renewal Fee |
- | - |
Business Experience Requirements |
Experience |
General business experience | - |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/Yes | -/- |
Start-up Costs |
No/Yes | -/- |
Equipment |
Yes/Yes | -/- |
Inventory |
No/Yes | -/- |
Receivables |
No/No | -/- |
Payroll |
No/No | -/- |
Training & Support |
Training |
On-The-Job Training: 40 hours
Classroom Training: 40 hours
| - |
Support |
Newsletter
Meetings/Conventions
Toll-Free Line
Grand Opening
Security/Safety Procedures
Field Operations
Site Selection
Franchisee Intranet Platform
| - |
Marketing |
Ad Templates
Social media
SEO
Email marketing
Loyalty program/app
| - |
Operations |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10
Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)
| - |
Expansion Plans |
US Expansion |
Yes | Yes |
Canada Expansion |
No | - |
International Expansion |
Yes | Yes |
Company Overviews
About Wetzel's Pretzels
Wetzel's Pretzels founded by Rick Wetzel & Bill Phelps, former marketing executives in 1994. 1st Wetzel's Pretzels located in South Bay Galleria in Southern California. First store was opened in 1995 Century City, Hollywood.
In 1996 Wetzel's Pretzels began franchising. Currently they have locations across United States (Universal City, Staples Center, Dodgers Stadium, Disneyland, Disney world) & internationally. Currently co-branding relationship with Cold Stone Creamery, Swensen's, Juice It Up and more.
Beginning of 2016 Wetzel's franchise fast food restaurants had 298 locations out of them 269 US locations; 2 in Canada; 19 worldwide; and 8 owned by the company itself.
Popular products:
Pretzels, consisting of several different flavors
Frozen Lemonade, sold in a variety of flavors.
Frozen Granita, a frozen version of the Italian dessert
The franchisor offers 3 franchise programs:
- A single Wetzel's Pretzels Bakery. The total investment necessary
to begin operation of a Wetzel's Pretzels Bakery ranges from $164,950
to $405,850. This includes approximately between $42,350 and $50,750
that must be paid to the franchisor. If Wetzel's Pretzels grants you a
license to operate a Remote Mobile Unit under a Remote Mobile Unit
Addendum to your Franchise Agreement, you will also pay it a fee of
$5,000 for a Remote Mobile Unit.
- Multiple Wetzel's Pretzels Bakeries within a defined area pursuant
to a Multi-Unit Development Agreement. There is an initial development
fee of $15,000 multiplied by the number of Bakeries which you must open,
plus the balance of the initial franchise fee ($20,000) for your first
Franchise Agreement. You will pay an initial franchise fee of $35,000
for each Bakery ($22,500 for a second Bakery in the same mall). However,
the franchisor will credit the development fee against the initial
franchise fees (at the rate of $15,000 for the second and each
subsequent Franchise Agreement).
- A single Wetzel's Pretzels Concession Truck or Trailer. The total
investment necessary to begin operation of a Wetzel's Pretzels Concession Truck or Trailer ranges from $126,600 to $275,850. This
includes approximately between $9,000 and $14,750 that must be paid to
the franchisor.
#497 in Franchise 500 for 2020.
About Sprinkles Cupcakes
Sprinkles
opened “the world’s first cupcake bakery” in Beverly Hills, as reported
by the Food Network, and is credited by the Los Angeles Times as “the
progenitor of the haute cupcake craze.” Founded by Candace Nelson, judge
on Food Network’s hit show “Cupcake Wars,” and husband Charles,
Sprinkles has inspired long lines of devoted Hollywood stars and serious
epicureans alike. From Tom Cruise to Oprah Winfrey, Blake Lively to
Ryan Seacrest, celebrities are abuzz about Sprinkles!
Baked
fresh in small batches throughout the day, Sprinkles Cupcakes are
handcrafted from the finest ingredients and contain no preservatives,
trans fats or artificial flavors. Sprinkles has locations nationwide, a
traveling Sprinklesmobile - the world’s first cupcake truck, and sells
its cupcake mixes at over 250 Williams-Sonoma stores throughout the US
and Canada.
In
2012, Sprinkles debuted the world’s first Cupcake ATM and continued its
foray into classic American desserts with the launch of Sprinkles Ice
Cream & Cookies.
“The Sprinkles Baking Book” hit the New York Times
Best Sellers list in October, 2016.
The total investment necessary to begin operation of a Production
Bakery is $781,000 to $1,075,000. This includes $40,000 to $43,250 that
must be paid to the franchisor or affiliate.
The total investment
necessary to begin operation of a Pantry Bakery is $576,000 to $895,000.
This includes $40,000 to $43,250 that must be paid to the franchisor or
affiliate. The franchisor and you may choose to sign a Development
Rights Agreement under which you will develop a number of Sprinkles
Cupcakes Bakeries. The franchisor expects the Development Rights
Agreement to cover between 2 and 10 Sprinkles Cupcakes Bakeries.
The
total investment necessary to begin operation under a Development Rights
Agreement is $40,500 to $202,500. This includes $40,000 to $200,000
that must be paid to the franchisor or affiliate.