About The Sweet Spot Franchise
The Sweet Spot is a dessert franchise offering a variety of sweet treats including cookies, cakes, specialty drinks, and other confections in a fun, inviting storefront.
The brand creates a destination for customers with a sweet tooth, whether they are picking up treats for a celebration or satisfying an everyday craving.
The Sweet Spot has been franchising since 2023.
The Sweet Spot Franchise Cost & Fees
Minimum Investment
$332K
Average Investment
$720K
Maximum Investment
$1.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales | National brand fund |
| Total Investment Range | $332,100 – $1,108,000 | Includes build-out, inventory, working capital |
The investment range of $332K–$1.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Leasehold Improvements | $100,000 | $300,000 |
| Lease Payments — 3 Months | $12,500 | $70,000 |
| Security Deposits | $3,000 | $10,000 |
| Equipment, Furnishings and Fixtures | $100,000 | $400,000 |
| Signage | $5,000 | $20,000 |
| Initial Inventory | $10,000 | $25,000 |
| Location Assistance Fee | $1,000 | $5,000 |
| Point of Sale System | $3,500 | $8,000 |
| Travel, lodging and meals for initial training | $1,500 | $5,000 |
| Licenses and Permits | $2,000 | $10,000 |
| Insurance — 3 Months | $600 | $5,000 |
| Market Introduction Program | $1,000 | $5,000 |
| Professional Fees | $2,000 | $5,000 |
| Additional Funds | $50,000 | $200,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Technology Fee | $4,000 to $8,000 Annually |
| Audit Fee | Cost of audit |
| Local Advertising Spend | 1% of Gross Sales |
| Cooperative Advertising | As determined by Cooperative, but not more than 3% of Gross Sales |
| Initial Training (For New or Replacement Employees) | $500 per person, plus expenses |
| Additional On-Site Training | $250 per diem rate per trainer, plus expenses |
| ServSafe Certification | $150 per person |
| Website Fee | $2,000 Annually |
| Interest | 18% per annum or highest rate allowed by applicable law, whichever is less |
| Repair, Maintenance, and Remodeling/Redecorating | Will vary under circumstances |
| Charges for "mystery customer" quality control evaluation | Will vary under circumstances, but not to exceed $1,000 per year |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 30 to 60 days before opening (39 hours total) |
| Classroom Training | 11 hours |
| On-the-Job Training | 28 hours |
| Training Location | Corporate headquarters and/or an affiliate's Shop in Virginia Beach, Virginia, or another designated location. |
| Additional Training | The franchisor may require the General Manager and other personnel to attend additional mandatory training programs and seminars, for which the franchisee must pay a reasonable fee and cover all associated expenses (travel, lodging, meals, wages). On-site remedial training is also available upon request, with fees and expenses borne by the franchisee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | A radius of between two to four miles from the Accepted Location. |
| Description | The Franchise Agreement specifies an Accepted Location and a non-exclusive Territory. The size and scope of the Territory (2-4 mile radius) depend on whether the Accepted Location is urban or suburban. No Territory is granted for Non-Traditional Sites (e.g., mall food courts, airports, hospitals). The franchisor and its affiliates retain all rights to operate or license other shops and sell products through various channels (e.g., Internet, grocery stores) within and outside the Territory, and may acquire competing businesses within the Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Renewals are automatic if the franchisee has been in substantial compliance throughout the initial term and is in full compliance at expiration. Franchisees must sign a renewal Franchise Agreement and other ancillary documents, which may have different terms (except royalty fees not exceeding 7% of Gross Sales). The renewal fee of $5,000 is payable upon signing. The franchisor may require updating, remodeling, or redecorating the Shop within six months of notice. Renewal may be refused if the franchisee's lease is not extended. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisee must obtain franchisor's prior written consent for any transfer of interest in the Shop or Franchise Agreement. Conditions for approval include: satisfaction of all accrued monetary obligations, no defaults, execution of a general release, transferee meeting franchisor's criteria (educational, managerial, financial, character), transferee signing a new franchise agreement (without initial fee), transferee renovating/upgrading the Shop, and transferor remaining liable for pre-transfer obligations. A transfer to a corporation or LLC for convenience of ownership may waive some conditions. |
| Termination for Cause | The franchisor may terminate the agreement immediately without opportunity to cure for material defaults such as operating at an unapproved location, failing to acquire an accepted site within the specified time, failing to construct/remodel according to plans, failing to open the Shop on time, abandoning the Shop, conviction of a felony or crime of moral turpitude, unauthorized transfer, or maintaining false records. Other curable defaults (e.g., failure to pay monies, failure to obtain confidentiality covenants, misuse of Marks, insurance failure) allow a 5-day, 10-day, 24-hour, or 30-day cure period depending on the default. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, the franchisee and its principals are prohibited from directly or indirectly diverting business, employing franchisor's or other franchisees' personnel, or having any financial interest in a similar ice cream/dessert business within the United States. After termination or expiration, for a continuous uninterrupted period of two years, the franchisee and its principals are prohibited from engaging in similar activities within a 15-mile radius of any Shop in the System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees must designate and retain a General Manager, approved by the franchisor, who is responsible for the daily operation of the Shop and must devote full-time and best efforts (40 hours a week) to this activity. If the franchisee is an individual, they must serve as the General Manager. If an entity, the General Manager is not required to have an ownership interest. The General Manager must meet franchisor's educational and business criteria and satisfactorily complete the training program. A replacement General Manager must be designated within 60 days if the current one ceases to serve or no longer qualifies. |
| Required Suppliers | Franchisees must purchase all furniture, fixtures, equipment, and certain supplies and materials (including dishware, tableware, and packaging) from the franchisor's affiliate, TSS Imports. Proprietary recipes and other proprietary products must be purchased solely from the franchisor, its affiliates, or a designated source. |
| Supply Restrictions | Franchisees must purchase or lease all fixtures, furnishings, equipment (including POS hardware/software), decor items, signs, and related items that conform to franchisor's standards and specifications. All food and beverage items, ingredients, supplies, materials, and paper goods must meet franchisor's standards and specifications and be obtained from approved suppliers. The franchisor provides a list of approved suppliers in the Operations Manual and does not make supplier evaluation criteria available. The franchisor reserves the right to change approved suppliers and negotiate terms for the benefit of the system. |
| Franchisor Revenue from Suppliers | In the fiscal year ending December 31, 2022, the franchisor did not receive any rebates from suppliers. As franchising began in December 2023, neither the franchisor nor TSS Imports derived revenue from required purchases of products or services prior to this date. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer, either directly or indirectly, any financing arrangements to franchisees, nor does it guarantee their notes, leases, or other obligations. |
The Sweet Spot Franchise Earnings — Item 19
The Sweet Spot does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
The Sweet Spot does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Sweet Spot Litigation & Risk Flags
Clean Litigation RecordThe Sweet Spot has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Sweet Spot System Growth
Total Units
2
Franchised
0
Company-Owned
2
The Sweet Spot currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 1 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Total Assets
$201K
Audited by CAVANAUGH NELSON PLC for year ending December 31st.
The Sweet Spot Franchise — FAQ
The total investment to open a The Sweet Spot franchise ranges from $332,100 to $1,108,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Sweet Spot charges a royalty fee of 6% of Gross Sales of gross sales, plus a 2% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Sweet Spot Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from The Sweet Spot to ensure you have the most up-to-date version.
The Sweet Spot does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
The Sweet Spot has been franchising since 2023. The FDD shows an investment range of $332,100-$1,108,000, a 6% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $332,100 to $1,108,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from The Sweet Spot and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Sweet Spot or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com