Yummy Cupcakes® Franchise Frequently Asked Questions

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At Yummy Cupcakes®, we feel that our success in a community and our success as a worldwide brand are directly related to the quality of our Owner/Operators. That is why we are diligent in the selection of partners to become Yummy Cupcakes® Franchisees. We select candidates for franchise opportunities only after having taken into careful consideration all of the information provided to us by each applicant through the Franchise Application process.

While the Yummy Cupcakes® Franchise Disclosure Document (FDD) answers all questions, in detail, regarding our Owner/Operators’ opportunities, and is available in several different formats, as a first step in the application process, we offer this Fact Sheet with answers to our typically asked questions.

Q: What Franchise Development Programs are available for a Yummy Cupcakes® and what do they cost to start up?

A: There are three available programs:

1. Single Bakeshop Program: Under this program, you will sign a Franchise Agreement to operate one Yummy Cupcakes® Bakeshop with an on-site baking facility. The total investment necessary to begin operations of a single Yummy Cupcakes® Bakeshop is available in full detail at the beginning of the application process.

2. Area Development Program: Under this program you will sign an Area Development Agreement under which we will assign you a defined area within which you must develop and operate a specified number of Yummy Cupcakes® Bakeshops with on-site baking facilities, within a specified period of time. The investment necessary to begin operations of 2 – 3 Yummy Cupcakes® Bakeshops under an Area Development Agreement is available in full detail at the beginning of the application process.

3. Satellite Development Program: Under this program, you will sign an Area Development Agreement and Hub Bakeshop Addendum to Area Development Agreement under which we will assign you a defined area within which you must develop and operate a Hub Bakeshop with an on-site baking facility and specified number of Yummy Cupcakes® Satellite Retail Stores without on-site baking facilities, within a specified period of time. You will prepare Yummy Cupcakes® products at your Hub Bakeshop for sale at the Hub Bakeshop and at your Satellite Retail Stores. The total investment necessary to begin operations of a Hub Bakeshop and 2-3 Yummy Cupcakes® Satellite Retail Stores is available in full detail at the beginning of the application process.

Q: How much money can I make?

A: While we have a tested business model that has proven profitable, profitability depends on many factors including operating and occupancy costs, financing terms, etc., but most the important factor is your ability to operate the business effectively. The exciting part is that you are in control.

Q: Does the total initial investment necessary to begin operations include the initial franchise fees payable to Yummy Cupcakes®?

A: Yes.

Q: What is the royalty fee?

A: Franchisees will pay an ongoing franchise fee of 5% of gross revenues from sales at the franchise locations.

Q: What are the ongoing marketing fees?

A: Franchisees will pay an ongoing marketing fund fee of 3% of gross revenues from sales at the franchise locations. The combined contribution to the marketing fund and expenditures for local advertising will not exceed 8%.

Q: Does Yummy Cupcakes® offer financing?

A: No. Financing is Franchisee’s responsibility.

Q: What does it take to be a successful Owner/Operator?

A: Ideally, we are looking for individuals who have experience in the retail food world and who know what it takes to be successful. This will include the following:

1. Ability to develop and execute a business plan.
2. An entrepreneurial spirit and strong desire to work hard and achieve results.
3. Someone who wants to be part of a franchise team.
4. Ability to manage finances including an understanding of business financial statements.
5. A commitment to personally manage and be responsible for the day-to-day operations of the business.
6. Willingness to train and become proficient in all aspects of operating a successful Yummy Cupcakes®.
7. An acceptable credit history.
8. Sufficient assets to invest in and maintain the business.

Q: What type of qualities/experience should I have to own a Yummy Cupcakes®?

A: Following are typical skills and traits as well as experience we find in successful franchisees:

1. Goal orientation: Successful franchisees are typically goal oriented and have a clear idea of what they want to accomplish and how they plan to do it.
2. Decisiveness: Successful franchisees are typically decisive people and gather whatever information they need to make smart decisions and then act in a timely manner. They are not procrastinators.
3. Leadership: Successful franchisees are typically persons who typically take charge in work settings and feel comfortable accepting the responsibility that comes with making decisions and dealing with the results of those decisions.
4. Honesty: Successful franchisees have integrity and apply that in relationships with employees, vendors and Franchisor.
5. Moderate risk taker: Successful franchisees have the ability to take calculated risks and are willing to accept risk in a business setting only after gathering information and determining how to minimize the risks.
6. Coachability: While you can expect to enter a system that shows you how to operate the business and not reinvent the wheel, you will execute a proven system to obtain predictable results. You will want to be comfortable following and executing someone else’s system.
7. Experience: While no experience is required, we do look for candidates with a working knowledge of basic recordkeeping; personnel management; food/beverage retail experience/knowledge; ability to build and lead a team; technology savvy to include computer skills and working knowledge of Word, Excel, and Outlook; a sharp eye for quality control; taking pride in your work and your accomplishments.

Q: I do not have baking experience. Can I still own a Yummy Cupcakes®?

A: Yes. Our Executive Chef has created recipes for every product that can be easily followed to create exceptional product. Every recipe is licensed to you when you become a Yummy Cupcakes® franchisee. In addition, Yummy Cupcakes® provides an Initial Training Program that includes classroom and hands-on training in baking. To support this, we offer opening assistance at your location, as well as ongoing communication and support as needed.

Next: Application Process