Besides the initial franchise fee, of $50,000, there are the premises leases. Basically, leasing the premise for a three-month period you can expect to pay $16,000 all the way up to $83,000-plus.
Real estate and improvements to the space is going to range from $75,000 to $250,000 and then equipment, furniture, fixtures, decor, etc., supplies…
All those added together with smaller miscellaneous expenses get the number to $347,666 to $691,783. It’s really going to depend on the space that you decide to rent and how many improvements you have to do to that existing space or not.
The advertising expenses for franchisees of Crumbl franchise are 2%, which is pretty in line for a food and beverage franchise. On the other hand, the Royalty Fee is above average at 8% of Gross Sales.
It’s good that you understand what the potential profit is by looking at the historics. Whether you’re going to open up a Crumbl franchise or whatever franchise.
60% of franchises disclose different financials in their FDD, including sales and often profit. We see only about 20% of franchises disclose the full profit-and-loss statement.
Luckily, Crumbl franchise is pretty transparent and they disclosed the sales and financials for 140 of their locations that operated throughout 2021. In the 2021 calendar year total median revenue was $1,687,731 at a gross profit margin of $707,912.53 and then a net profit of $279,212.
If you’re investing $227,666 to $567,833, and, once the business scales up, you can expect $279,212 in net profit. That’s not a bad deal.
Find a breakdown of return on investment below. This includes the standard 2 year process from starting the franchise development process to the grand opening of your store.
|Initial Investment (midpoint)||%Profit margin of average franchise sales||Estimated profits||Time to recoup investment|
|17.65% (Median)||$279,212.00||3.42 years|
On the low end of a Crumbl franchise the net profit is $33,260. Even the worst performer is still making a net profit! Meanwhile, on the high end, one of the franchisees made a $357,512 net profit for the 2021 calendar year.
Now, it’s important that the franchisor is also making money. Looking at the income statement for how much the owners of the franchise make from the franchisor level, they collected royalty fees of $30 million and franchise fees they had amortized of $2.5 million. There are also advertising and marketing fees that totaled $8,216,207, as well as other revenue of $422,105. The total revenue of $46.6 million, that’s how much the Crumbl Enterprises made in revenue from the 327 locations across the U.S.
And then, in terms of Crumbl’s total net income, $22,424,481. Which is pretty impressive. We’ve added the financials for 2020 to this blog post. Again, these are all the 2021 financial numbers for a Crumbl franchise.
Crumbl is a food and beverage concept and mostly competing with other baked goods. Such as doughnuts and other cookie concepts. Although the company has specialty ice cream flavors, which allows it to compete against multiple sectors within the food and beverage industry.
You look at a relatively low investment amount. If you’re investing less than $500k and the net profits are over $200,000, you could expect to get your capital back in three years or less.
However, it’s not all about the money for many of our clients at Vetted Biz and Visa Franchise. You might want to consider other franchises that aren’t basically selling sugar at the end of the day. Principally to young kids.
If you’re interested in maybe having a higher social good, you could consider looking at some different healthcare franchises. As well as senior care options. You can look at some videos that we’ve recently done with Success on the Spectrum. Which is a school for kids with autism using applied behavioral therapy. And the numbers are really good and you’re having a better societal impact than just selling cookies.
Cookies might be something that you’re passionate about and want to get involved in, and also the numbers are good. With all that, you might consider some other franchises that could have a lower investment cost. As well as a higher impact on your community.
An important note for those interested in obtaining an E-2 visa and might be interested in a cookie franchise like Crumbl…
Crumbl right now does not work with those that are seeking an investor visa like the E-2 or EB-5 through investment in that franchise. You already need to have a U.S. Green Card if you’re looking to invest and operate a Crumbl franchise in the United States.
Crumbl has had tremendous success in the few years since it opened its first location in Utah. The low start-up cost to open a franchise with the significant annual profit makes it an ideal investment opportunity for anyone looking to open a Food and Beverage Franchise. That said, it is still a relatively new concept when compared to franchises that have thousands of locations across the country. Crumbl provides extensive training on how to maintain quality standards, and it is important as an owner to have an effective management structure and plan to attract a customer base. Thankfully, Crumbl has done an excellent job marketing the brand on social media platforms such as Tiktok. Ultimately, Crumbl has the potential to be one of the biggest desert players for years to come and be sure to take advantage of this sweet opportunity.
Everything you need to know about the Crumbl franchise and 3 alternatives to invest in !
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