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Just Baked, famous for its gourmet cupcakes, recently opened its commissary in Livonia.  It is nearing its target to make 2 million cupcakes this year.  Not only that.  With four retail stores to open in Detroit this month and 5 more middle of 2012, the company is nearing its goal of  20 stores in southeast Michigan.  “You don’t need ovens, mixers or refrigeration,” founder of Just Baked Pam Turkin told AllBusiness.com. “You just need to build a retail storefront.”

While Pam Turkin, founder of Livonia-based Just Baked LLC’s cupcakes, has spent most of her time and energy getting her baked goods into more than 400 stores across Michigan – including Meijer and Spartan Stores – she is now developing a franchise system to grow the brand in Southeast Michigan.

Just Baked, known for its gourmet cupcakes with names like Fat Elvis and Grumpy Cake, has seven retail locations in Southeast Michigan and is set to open four more around metro Detroit by mid-December, three of which will be franchise-owned.

Turkin said she expects to open five more by the middle of next year, for a total of 16. She said she hopes to open 20 stores in the region in all.

“You don’t have to be a baker or have a culinary background to own a Just Baked franchise,” Turkin said. “This model lets people who don’t want to put the time and money and risk into opening a bakery, open a bakery.”

Just Baked recently moved production into a 16,000-square-foot commissary in Livonia. Cupcakes are then delivered to both the corporate-owned and franchised retail locations

Franchise fees are $25,000, and the average build-out falls between $25,000 and $40,000. Just Baked charges franchisees a flat rate for each cupcake, which includes both royalty and marketing fees. The specific rate was not disclosed. Customers pay $2.95 each or $24.95 a dozen for the high-end cupcakes.

“You don’t need ovens, mixers or refrigeration,” Turkin said. “You just need to build a retail storefront.”

The company declined to release its entire franchise circular but provided specific data on cost to entry for franchisees. A franchisee’s total estimated initial investment is estimated at $75,000 to $158,000, depending on real estate, furniture, training, insurance and other costs.

“We don’t need culinary people,” Turkin said. “We look for people with good retail and marketing skills.”

Just Baked is on pace to make more than 2 million cupcakes this year.

Photo by jasnbrwn71