Crumbl Cookies Franchise Cost Justifies High Owner Salary In 2023
Written by: Tyler Morris
Last Updated by
Rocio Somoza: January 27, 2023
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Download NowCrumbl franchise is a cookie baking and delivery business with franchised locations across the United States as well as an online store. Crumbl sells gourmet cookies with unique flavors as well as complementary ice cream and other related products.
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Crumbl Cookies Headquarters
The Crumbl Cookies Franchise is a Utah-based limited liability company and was formed on February 9th, 2018. A parent company was later formed on May 29, 2019 named Crumbl Enterprises. Affiliate companies include Crumbl LLC, another Utah limited liability company organized on August 14, 2017 and Crumbl IP, LLC, which was organized two years later on November 21, 2019.
This article provides insight about Crumbl Cookies franchised units in the United States.
Crumbl Cookies has expanded to over 300 bakeries in 42 states, making it the fastest-growing cookie company and soon to be largest one. 300+ units are franchise owned and only one unit is company owned.
How Much is a Crumbl Cookies Franchise?
Crumbl Franchise Fee: $25,000
Crumbl charges $25,000 for the regular initial fee, but for territory reservation agreements, which allow for franchisees to open multiple Crumbl units, the initial fee is $5,000 plus $20,000 for each additional franchise unit that is developed.
Franchise Cost
The total investment necessary to begin operation of a standard Crumbl Cookies franchise is from $227,666 to $567,833.
Crumbl Cookies Franchise Cost Breakdown
| Initial Franchise Fee | $50,000 ($25,000 if signed before jun 30 of 2022) |
| Initial Tech and other Equipment Package | $23,300 – $167,650 |
| Initial training fees, and travel, lodging, food, and other expenses while training | $20,000 – $30,000 |
| Real Estate and Improvements | $75,000 – $250,000 |
| Rent (3 months) | $16,666 – $83,333 |
| Professional Fees | $8,000 – $15,000 |
| Equipment, furniture, fixtures, decor, and supplies | $75,000 – $100,000 |
| POS system, computer hardware & software | $3,500 – $8,000 |
| Signs | $6,500 – $15,000 |
| Misc. Opening Costs | $2,500 – $5,000 |
| Opening Inventory | $5,000 – $10,000 |
| Additional Funds (3 months) | $10,000 |
How Much Do Franchise Owners Make?
The financial representations in Crumbl’s FDD took a subset of continuously operating franchises throughout the year 2021. According to their FDD, the total number of franchises that existed at the beginning of 2021 and continued to operate even at the end of the year is 140, which is about 43.11% of total franchised outlets operating at the end of 2021.
The following financial data is only representative of the 140 franchise locations open for all of 2021.
Although the year in which this data was taken predates the COVID-19 pandemic, in their FDD Crumbl stated that there were no significant changes in monthly revenue in any of the 140 franchises represented
Crumbl Franchise Sales Figures (Yearly)
| 2021 Calendar Year | Average | High | Median | Low |
|---|---|---|---|---|
| Total Revenue | $1,687,731 | $3,639,139 | $1,582,090 | $734,278 |
| Gross Profit | $749,555 | $1,771,793 | $707,912.53 | $282,380 |
| Net Profit | $357,512 | $618,102 | $279,212 | $33,260 |
Median Net Profit
A median net profit of $279,212 means that most Crumbl Cookies Franchise owners can expect to earn a profit in only a few short years. With a franchise costing between $227,666 to $567,833 and it taking about 2 years on average to open a food and beverage franchise there are calculated return on investment findings below.
| Initial Investment (midpoint) | %Profit margin of average franchise sales | Estimated profits | Time to recoup investment |
|---|---|---|---|
| $397,749.5 | 10% | $168,773.10 | 3.5 years |
| 15% | $253,159.65 | 3 years | |
| 17.65% (Median) | $279,212.00 | 2.5 years | |
| 20% | $337,546.20 | 2 years |
The median Crumbl Cookies Franchise operator can expect to recoup their investment in as little as 2.5 years! This is from the time they begin the franchising process. From the minute their location has its grand opening it takes about 1.5 years to recoup the initial investment. Crumbl Cookies are not only a popular dessert destination, they are also highly profitable!
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Revenues: | |||
| Royalties | $ 30,086,511 | $ 7,193,704 | $ 2,322,929 |
| Advertising and marketing fees | $ 8,216,207 | $ 3,457,560 | $ 1,461,894 |
| Franchise fees | $ 2,540,912 | $ 692,834 | $ 179,692 |
| Supply fees | $ 2,463,280 | $ 888,145 | $ 321,897 |
| Additional service fees | $ 1,040,919 | $ 469,032 | – |
| Technology fees | $ 1,078,700 | $ 339,500 | $ 42,600 |
| Gift card breakage | $ 210,770 | – | – |
| Merchant fees | $ 580,171 | $ 215,604 | – |
| Other revenue | $ 422,105 | $ 166,100 | $ 5,831 |
| Total Revenues | $ 46,639,575 | $ 13,422,479 | $ 4,334,843 |
| Cost of revenue | 11,721,817 | 5,012,402 | 1,825,273 |
| Operating Expenses | 12,521,277 | 5,791,587 | 2,236,786 |
| Income from operations | 22,396,481 | 2,618,490 | 272,784 |
| Gross Profit | $ 34,917,758 | $ 8,410,077 | $ 2,509,570 |
| Interest expense | (2,584) | (4,399) | (8,810) |
| Gain (loss) on disposal of property equipment | 30,484 | (49,603) | (4,048) |
| Total other income (expense) | 27,900 | (54,002) | (12,858) |
| Net income | $ 22,424,381 | $2,564,488 | $259,926 |
| Members’ Deficit — Beginning of Year | (1,655,043) | (395,760) | (188,576) |
| Contributions from Members | — | 12,229 | 12,146 |
| Distributions to members | (25,571,672) | (3,836,000) | (479,256) |
| Members’ deficit — End of Year | $ (4,802,334) | $ (1,655,043) | $ (395,760) |
Crumbl Cookies Franchise Income Statement Key Insights
The year that Crumbl first started franchising, they encountered a loss in their net income. However, the subsequent year they made a startling rebound, likely due to the growth and success of new franchises. In 2020 Crumbl Cookies had a net income of $2,564,488, and in 2021 it grew nearly ten times as much to $22,424,381. Crumbl Cookies is seeing dramatic growth in a very short time period, which allows it to continue to open new franchises and begin seeking alternative revenue streams. Note that because Crumbl is both on the smaller and newer end of franchises in the Food and Beverage industry, their revenue may not be as comparatively high.
Crumbl Cookie Franchise Competition
Competitors of Crumbl Cookies are other high end bakeries and cookie delivery companies such as Cookie Advantage, Baked Cookies & Dough, Great American Cookies, and Le Macaron. They also compete indirectly with other fast food concepts in the baked goods industry, such as donut franchises like Krispy Kreme or cinnamon roll franchises like Cinnabon.
Furthermore, Crumbl Cookies Franchises have entered a highly competitive market. Baked goods and ice cream have been around for centuries and there are countless outlets across the U.S. Given recent economic uncertainty many consumers may be hesitant to pay a premium price for cookies, and ice cream. This may cause consumers to turn towards store bought dough such as Nestle Toll House, Betty Crocker, Pillsbury, etc.
Another threat to the Crumbl Cookies Franchise are national ice cream chains such as Ben and Jerry’s and Dairy Queen.
During warmer times of the year consumers may opt for traditional ice cream stores despite Crumbl Cookie Franchises having these options. Many consumers turn to soft-serve ice cream in the summer causing them to seek out traditional outlets.
How many Crumbl Cookies Franchises have Opened/Closed?
Systemwide Outlet Summary for Years 2019—2021
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 15 | 54 | +39 |
| 2020 | 54 | 141 | +87 | |
| 2021 | 141 | 326 | +185 | |
| Company-Owned | 2019 | 1 | 1 | +0 |
| 2020 | 1 | 1 | +0 | |
| 2021 | 1 | 1 | +0 | |
| Total Outlets | 2019 | 16 | 55 | +39 |
| 2020 | 55 | 142 | +87 | |
| 2021 | 142 | 327 | +185 |
2021 Results
Crumbl Cookie Franchises had a staggering 2021, by more than doubling total locations across the U.S. They have greatly benefited from the shift toward delivery and takeout since the start of the Covid-19 pandemic. Crumbl Cookie Franchises tapped into social media outlets to gain a large audience. As a result, people began going out of their way to find a Crumbl Cookies Franchise near them. This leads to significant word of mouth and as a result, the Crumbl Cookie Franchise became a phenomenon overnight.
Where are Crumbl Cookie Franchise Locations In 2022?
How many Crumbl Cookie Franchises are there? In 2021 Crumbl added an additional 185 franchised locations! There are now a total of 326 total Crumbl franchises plus the single company owned and operated in Utah. A list of the ten states with the most Crumbl franchises can be seen below:
| State | Number of Locations |
|---|---|
| Texas | 40 |
| California | 36 |
| Utah | 27 |
| Florida | 21 |
| Arizona | 17 |
| Colorado | 15 |
| North Carolina | 13 |
| Oregon | 13 |
| Tennessee | 12 |
| New Jersey | 11 |
That’s a lot of cookies, but to put it in full perspective find a map of all Crumbl Cookies Franchise locations across the U.S. below.
Franchise opportunities
While Crumbl Cookie Franchises grew dramatically in 2021 there are still plenty of opportunities for new franchises to open. For example, Massachusetts, which is the home to the Chocolate Chip Cookie, only has 3 Crumbl Cookie franchises in Station Landing, Saugus, and Woburn. While the state has numerous specialty bakeries and dessert-themed fast-casual restaurants, there is a tremendous opportunity for future franchises.
In addition, the state of New York only has a single Crumbl Cookie Franchise! While New York City real estate is quite expensive this is an untapped market for Crumb Cookies to break into. Crumbl Cookie Franchises in New York City will be able to stay open later and be able to drag in higher revenue as a result. While Crumbl Cookie Franchises are opening up all over the map there are still countless opportunities across the country to serve the public some sweet desserts.
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 15 | 54 | +39 |
| 2020 | 54 | 141 | +87 | |
| 2021 | 141 | 326 | +185 | |
| Company-Owned | 2019 | 1 | 1 | +0 |
| 2020 | 1 | 1 | +0 | |
| 2021 | 1 | 1 | +0 | |
| Total Outlets | 2019 | 16 | 55 | +39 |
| 2020 | 55 | 142 | +87 | |
| 2021 | 142 | 327 | +185 |
Who owns Crumbl Cookies Franchise?
Crumbl Cookies Franchises is operated by Crumbl LLC, and is based out of Utah. The first Crumbl Cookie location opened on August 14th, 2017. Crumbl LLC owns all the licensing and intellectual property rights to Crumbl Cookies Franchises. Jason McGowan (CEO), and Sawyer Hemsley (COO) are the co-founders of Crumbl LLC. In fact The Co-founders are cousins making Crumbl Cookies a family business.
The cousins opened their first store in 2017, while Sawyer was still attending Utah State University. The cousins spent thousands of dollars developing their recipes and creating cookies that live up to the brand that they had envisioned. From the very beginning they knew it would be an essential part of the Crumbl Cookie Franchise process to have customers walk in and see the entire baking process be conducted directly in front of them. The cousins wanted to create a unique atmosphere that also showed customers the ingredients actually going into the cookies they will be eating.
Crumbl Cookies Franchise Menu and Prices
The Crumbl Cookies Franchise menu includes a wide variety of cookies and ice cream. The cookies change on a weekly basis and examples include the Classic Krispy Bar, Caramel Shortbread which includes twix, Peach Sugar, Peanut Butter Cup with Reese’s, Original featuring M&Ms. Don’t worry, the world famous Milk Chocolate Chip cookie is alway on the menu though! Super exciting that new flavors are on the Crumbl Cookies Menu nearly every time you visit.
Meanwhile, Ice Cream flavors on Crumbl Cookies Menu include: Cookie Dough Crunch, Raspberry Cheesecake, Brownie Fudge, Snickerdoodle, Peanut Butter, and Vanilla Bean.
The Crumble Cookie Franchise Prices can be found below:
| Cookies | Total Price | Price Per Cookie |
|---|---|---|
| Single Box | $4.38 | $4.38 |
| 4-Pack Box | $15.38 | $3.85 |
| 6-Pack Box | $21.95 | $3.66 |
| Party Box (12 Cookies) | $38.45 | $3.20 |
| Ice Cream | Total Price | Price Per Half Pint |
|---|---|---|
| Single Cream Half Pint | $4.38 | $4.38 |
| Cream Carrier 4 Half Pints | $15.38 | $3.85 |
How Much Can a Crumbl Cookies Franchise Owner Make?
The median Crumbl Cookie Owner in 2021 earned $1,582,090 in total revenue with a net profit of $279,212. The high is $3,639,139 in total revenue and $618,102 in profit. The low end is $734,278 in revenue with a $33,260 net profit. Given the $347,666 – $691,783 investment to open a Crumbl Cookie Franchise that is a pretty sweet return on investment.
We estimate that there are multiple Crumbl Cookies franchise owners making over $1 million per year!
Crumbl Cookies Franchise App
Crumbl Cookies Franchise while a chain of specialty baked goods and ice cream has a strong digital presence. Jason McGowan and Sawyer Hemsley saw the need for specialty bake shops to have easy and fast ordering processes. Additionally, to compete with national chains they needed to be able to deliver. The Crumbl Cookies Franchise App allows customers to order pick-up both in store and curbside as well as offers local delivery options. The app also lays out all prices and visualizes the different deals in a simple format.
How to Open a Crumbl Cookies Franchise?
Crumbl Cookies Franchise Requirements
Crumbl Cookies is a full time commitment and “isn’t a side hustle” per their website.
They are looking for owners who are prepared to put the apron on and roll up the sleeves.
They require minimum liquidity of $150,000 and most franchisees seek financing through the SBA loan program.
7-Step Process to become a Crumbl Cookies Franchisee
Step 1- Introduction to Crumbl
Overview of the Crumbl Franchise Opportunity including:
- Expectations
- Available locations
- Costs & items
- Reception of the Franchise Disclosure Document (FDD).
Review the FDD and take the steps to prepare for the interview in Phase 2. This is also when you will select your territory.
Step 2- Interview
This interview is an opportunity for you to meet with the management team and better understand the potential operation plan.
Step 3- Proposing a Location
Submit a location within your selected territory for approval.
Step 4- Completing the Purchase
After your location is approved, you’ll then sign the Franchise Agreement and pay the Crumbl Cookies franchise fee and other initial fees.
Step 5- Onboarding
All necessary training and orientation then takes place to prepare you for opening your Crumbl cookies bakery.
You will receive support to ensure that when your doors open, you are fully prepared to bake, make, and operate your store in the ‘Crumbl way’.
Step 6- Construction
Begin physical construction and buildout of your Crumbl location including all necessary permits.
Step 7- Grand Opening
Grand Opening day arrives! Crumbl bakery will now be fully operational and open to all cookie-lovers in your area.
Lack of Crumbl Franchise Opportunities Available to Open In The U.S.
Before you start the application process, make sure you are in a state that does not already have a franchise operating or under construction (over 500 to date). Many states/ cities in the U.S. are already taken by current Crumbl Cookies franchisees.
Crumbl Cookies Franchise Conclusion
Crumbl Cookie Franchise is a fairly new and unique franchise concept that has shown relatively high profitability in recent years. With signature cookie flavors that are either served warm or chilled, Crumbl takes the art of cookie baking to the next level. Furthermore, Crumbl is starting to make a name for itself in the Food and Beverage industry, as it now has over 300 locations across the U.S. The app makes it easy for customers to either pick up their cookies or have them delivered. Crumbl Cookies Franchise having started just before the start of the Covid-19 pandemic allowed the company to pivot quickly. The need for quick service and delivery is essential in the Food and Beverage Industry today. The business while young has a bright future and there are definitely some sweet profits to be earned.
