- Why Cupcakes?
The Product: Cupcakes has been baking fresh daily since the first day on April 12, 2002. In only 5 years, Cupcakes by Heather & Lori has become a leader in the cupcakes retail bakery industry. At Cupcakes, we continue to use simple basic ingredients that set us apart from the competition in taste, value and presentation.
The Brand: The Cupcakes trademark has been globally recognized as the original cupcakes bakery. The Cupcakes brand stands for fun, hip, youth, nostalgia, and celebration! Currently the brand is consistently leveraged throughout the bakery on packaging, hats, apparel, bottled water, retail merchandise, and signage.
The Opportunity: Cupcakes aggressive growth strategy includes expanding nationwide and into the USA starting 2008. Cupcakes is now seeking strong potential candidates for Franchises and Area Development. The objective is to establish Cupcakes Bakeries in strategically chosen communities throughout North America and beyond.
The Commitment: Cupcakes has a commitment to every customer. We want to preserve the nostalgic retail culture in every Cupcakes bakery while maintaining the 'Icing on the Cake' customer experience. The 'Icing on the Cake' customer service program was created in-house. Every employee, every department and every franchisee is encouraged to practice the 'Icing on the Cake' Cupcakes standard so they too can discover, experience and celebrate the Cupcakes commitment with every customer. Cupcakes allegiance with the community is another commitment. The commitment to the community is a Cupcakes' core value and Cupcakes chooses to be actively involved thru various community groups, schools and programs to enhance the exposure and provide support.
The Celebration: Cupcakes mission is to celebrate everyday! Cupcakes celebrates all company successes with its employees, managers and franchisees.
- Opportunity
Cupcakes by Heather & Lori is excited to announce the franchise opportunities available for qualified applicants to open and operate their own Cupcakes Bakery.
1. Franchisee Agreements Opportunities exist in all regions of North America for eligible franchisees to purchase their own Cupcakes Bakery.
2. Area Development Agreements Partnership opportunities are available to the individuals that want to establish and develop select regions in Canada, the USA and beyond. This requires significant experience and investment.
3. Bakery Lessee Agreements Current Cupcakes' Department Managers who have a minimum of 2 years experience working at Cupcakes who dream of owning their own business but do not have the financial means.
- Investment
Effective as of Jan 2008 CDN The Franchise Capital Investment required to purchase and operate a Cupcakes Retail Bakery will vary by location, size, landlord leasehold improvements and contractor pricing for each market. The following chart is a general breakdown from low to high build out costs. Please note that any applicable taxes are not included. Please note all figures listed below are estimates.
- FAQs
1. What is the cost of a Cupcakes franchise? Cupcakes financially pre-qualifies all prospective Cupcakes Franchisees who can confirm that they have the total investment price of approximately $500,000.00 with approximately $250,000 in unencumbered (free and clear) cash. The total investment price includes the initial franchise fee, build out costs, opening and operational costs. The amount can fluctuate per store depending on the leasehold improvements, current market conditions and negotiated rental rates.
2. How much money will I make? That depends on the Franchisee and their ability to operate the bakery effectively. Determining factors like following operational budgets, fixed costs, cost of financing, and sales volumes all affect the bottom line and profitability.
3. Is Cupcakes accepting Franchise applications for the United States? Yes. Cupcakes by Heather & Lori is currently considering eligible applicants for specific regions in the USA.
4. Do I need to have Franchisee experience to operate a Cupcakes Bakery? No, previous Franchise experience is not a requirement. Cupcakes provides ongoing training and support that will properly prepare every Franchisee with the appropriate tools and information they need.
5. Do I need to know how to bake cupcakes? It is not required for the Franchisee to bake cupcakes, although the Cupcakes Franchise Training Program does start with an Introductory Cupcakes Baking Session.
6. What is Cupcakes looking for in a Franchisee? All eligible Cupcakes Franchisees must, at a minimum, have the following qualities:
- minimum 2 years management experience
- individuals that possess a desire to achieve and grow rapidly with Cupcakes
- entrepreneurial spirit, grit and tenacity
- enthusiasm and devotion to work daily in the store on the floor
- comfortable knowledge and experience with computers
- ability to read, understand and manage financial statements
- willingness to learn and follow the Cupcakes Manuals and Procedures
- team player
- superior organizational skills
- acceptable credit history
- sufficient liquid assets (i.e. cash) to invest into the business
7. Does Cupcakes offer financing arrangements? Cupcakes does not provide financing for eligible Franchisees. Prospective Cupcakes' employees considering owning a Cupcakes Bakery are recommended to refer to the Bakery Lessee Agreements Section.
8. Can a Franchisee own more than one Cupcakes Bakery location? Yes, Cupcakes is looking for prospective Franchisees who are capable of operating multiple Cupcakes Bakery locations.
9. What is term of the Cupcakes Franchise Agreement? The Cupcakes Franchise Agreement is a 10 year term.
10. Is the Cupcakes Franchisee required to be managing the day to day operations of their Cupcakes Bakery?It is highly recommended that every Cupcakes Franchisee understand and experience the day to day operations of their location on a management level. It is completely acceptable for a trained Cupcakes Franchisee to eventually hire and teach a suitable Store Manager to take over the “Hands On” responsibilities.
- Application
The filing of this application does not obligate the potential Franchisee to purchase or the Franchisor to sell a Franchise. Complete in full and do not use abbreviation. Please print clearly or type. Fields marked in * are mandatory.
- Becoming a Franchisee
Franchisee Fundamentals A franchisee needs to pass these initial 3 fundamental questions in order to be approved as a potential candidate:
- Do you have approximately $500,000? ($250,000 free and clear)
- Do you have retail, business and/or management experience?
- Are you prepared to work in the day to day operations of the Cupcakes Retail Bakery?
Initial Franchise FeeThe franchise fee includes:
- Cupcakes Franchise Operator License for a 10 year term
- Licensing Ownership of the brand 'Cupcakes by Heather & Lori'
- Insights online personality profiling
- 10 weeks of franchisee training at the corporate Cupcakes Retail Bakery location
- 2-4 weeks of franchisee baker training at the corporate Cupcakes Retail Bakery location
- 1st month full time support of a Cupcakes Franchisor Trainee in the franchisee Bakery location
The first required payment installment is the initial franchise fee of $50,000. A 20% portion of this payment is due before Part 1 of the Cupcakes Franchisee training.
- Franchise Payment
As part of the conditions to being a Cupcakes Franchise Operator, there are certain payments that are required on an isolated or reoccurring basis. The Franchise Agreement is a 10 year term.
