Joel Libava
Here’s my Crumbl Cookies franchise review, including cost, detailed information about the concept and more. It includes an updated video on this growing dessert franchise business opportunity.
Let’s find out if a Crumbl franchise is the right one for you to own and operate.
The Crumbl Cookies Franchise: History And More
Crumbl® Cookies has quickly become one of the most sought-after dessert franchise businesses in the United States. From its humble beginnings as a small bakery, Crumbl Cookies has now expanded to multiple locations across the country, attracting long lines of customers eager to taste its delicious, fresh-baked treats.
Business-wise, they’ve been franchising since 2018 and are headquartered in Orem, Utah. As of this writing, there are 600+ Crumbl franchises open.
Crumbl Franchise Cost: Initial Investment And Ongoing Fees
Crumbl Cookies franchise cost ranges from $227,666 to $567,833. And that’s for one unit.
Franchise Fee: $25,000
Minimum liquidity required: $150,000
Ongoing Monthly Fees
Royalties: 8%
Marketing Fee: 2%
All in all, the cost of opening one Crumbl Cookies location is not cheap.
What Makes The Crumbl® Cookies Franchise Unique? High-Quality Ingredients and Their Baking Process
At the heart of Crumbl Cookies’ success is its commitment to using only the finest, freshest ingredients in its baking. The company sources its flour, sugar, and other key ingredients from trusted suppliers, ensuring that each and every cookie is made with the highest quality ingredients.
Additionally, Crumbl Cookies uses a unique baking process that combines both time and temperature in order to produce a cookie that is both crispy on the outside and soft and chewy on the inside. This unique baking process, combined with the company’s use of premium ingredients, helps to set Crumbl Cookies apart from its competitors and provides a truly unforgettable taste experience for customers.Finally, Crumbl’s menu boasts over 200 unique flavors, and the selection changes on a weekly basis. According to their website, doing that encourages customers to return to try new flavors.
Interestingly enough, as I was writing this, someone in my family just asked me “what are their cookies of the week?” That’s a good sign that their marketing works.
(Scroll down for the new video about the newest publicly released Crumbl store earnings and more.)
The Crumbl Franchise: Strategic Marketing and Branding
Part of Crumbl Cookies’ success can be attributed, in part, to its effective social media marketing and branding strategies.
The company has leveraged social media and influencer marketing to reach a wider audience and build its reputation as a go-to destination for delicious cookies. Look at their massive follower counts:
- Instagram: 2.1M followers
- TikTok: 5.6M followers
- Twitter: 531K followers
- YouTube: 774K subscribers
Role Of The Franchisee In The Operation Of The Business
Crumbl Cookie franchisees are expected to be actively involved in the business. To a point.
That’s because according to Item 15 of the Crumbl FDD, “Your primary owner must personally participate in the direct operation and supervision of the franchise business on a full-time basis for at least the first 60 days of operation. Thereafter, we require on premises supervision by your primary owner or your designated manager who must be certified by us to manage your franchise business. You primary owner must work sufficient hours to operate your franchise business or supervise your manager so that your franchise business is operating at maximum capacity and efficiency.”
Finally, the icing on the cake cookie comes directly from their franchise website.
“This isn’t a side hustle. We’re looking for owners who are prepared to put the apron on. If you aren’t ready to be in your area and in your store for an extended amount of time – this might not be for you.”
So don’t plan on being an absentee owner, because it won’t fly.
Important Update: Crumbl Revenue And Profits Down In 2023
Before you get too excited about opening a Crumbl franchise location to your area, check out these numbers. They come to you courtesy of the Eat This, Not That! website:
“In 2023, 571 Crumbl locations reported an average revenue of $1.16 million, making an average net profit of $122,955. Meanwhile, in 2022, 324 units generated an average revenue of $1.84 million and an average net profit of $298,319. This change marks a 37% decrease in average revenue and a 59% drop in average net profit.”
So there’s that.
Now check out this new video. because I go into something else besides the less-than-stellar public store earnings data:
The Franchise King’s Review Of Crumbl Cookies: Things You May Have Missed
I’m not sure if the other Cookie Franchises do this, but Crumbl has an internal social network with a franchisee-only platform to monitor unit sales, ticket times and more?
Which makes sense, because from what I’ve read, it seems like the founders of Crumbl are definitely pro-technology, and continue to discover ways for franchisees to use emerging technologies for maximum benefit.
The other thing I saw was a bit troubling.
In Item #6 of the FDD, listed under “Other Fees,” franchisees can get nicked for a lot of stuff. To me, it’s excessive and unnecessary.
Bluntly, except for the intellectual property part, the fines franchisees can get hit with worry me. Especially since they can up the cost for this popular cookie franchise.
In one case, a simple, “Franchisees are expected to maintain a clean, healthy environment for their customers and employees” would probably do.
In any event, here are your potential fines if you don’t comply.
System Non-Compliance Fines
- Store uncleanliness ($250)
- Failing to provide documentation ($250)
- Unauthorized use/disclosure of trademark, brand materials, intellectual property, confidential information ($1,000)
- Unauthorized use of product/supplier ($1,000) Gulp!
- Unauthorized Packaging ($1,000)
- Poor product quality ($250)
- Failure to meet deadlines for new equipment, products, processes, etc. ($250)
- Hygiene/Dress code violation ($250)
- Health or safety violation ($250)
- Miscellaneous noncompliance ($250)
Wait. Hygiene? Like bad breath? Unkempt hair? That’s ridiculous.
One more thing.
The founders of this cookie franchise are (right now) suing competitors who are supposedly infringing on their trademarks and cookie designs.
That’s pretty unusual for a young franchisor, and it means the company is spending a lot of money on lawyers. Could that hurt their financials? Could it potentially hinder investments that can help Crumbl Cookie franchisees make more money? Could it increase the cost of a Crumbl franchise? Maybe. Will this affect other Cookie Franchises? Only time will tell.
Proprietary Cookie Information Lawsuit Update
October 16, 2023: Crumbl and Dirty Dough say they will settle the lawsuit mentioned above.
According to Crumbl’s statement posted in an article in The Salt Lake Tribune, “As part of the case resolution, Dirty Dough returned the Crumbl information and has agreed to change certain cookie boxes in order to eliminate any potential confusion for customers. The remaining terms of the settlement agreement are confidential.”
I’m sure Crumbl franchisees are glad that’s done.
How Much Does A Crumbl Cookie Franchise Owner Make? Franchisee Profits
The Crumbl franchise opportunity provides Financial Performance Representations (FPR’s) in Item #19 of their FDD.
I won’t state the numbers here, as it’s always best to contact existing franchisees to get the current numbers. Plus the numbers don’t matter much if it ends up that the franchise isn’t right for you.
As a matter of fact, I don’t care if the franchisor discloses franchisee sales and earnings figures or not. Why?
Because they’re averages, and most aspiring franchisees look at the higher earnings numbers, anyway. Then they use them to make a buying decision, and end up being disappointed that they didn’t hit the high-end of the earnings spectrum. Don’t do that!
Instead, call a lot of franchisees and ask them about earnings, break-even times, and other things that are important to you.
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Crumbl News Updates
While this isn’t being publicized much (yet), Crumbl recently acquired Crust Club, a fresh pie business founded in Utah in 2016. Deal terms haven’t been disclosed.
Crumbl is getting ready to open the first Crust Club franchise in Logan, Utah.
According to a report from CNBC.com, Crumbl’s 980 stores are doing $1 billion in sales.
Crumble Cookies Franchise Review From The Franchise King
Is Crumbl a good franchise to own?
From a consumer standpoint, the product is on the expensive side. But I have tasted their cookies. They’re darn good.
And whether you’re a fan of classic chocolate chip cookies or are looking to try something new, there is no denying that Crumbl Cookies is a must-visit destination for anyone in search of delicious, freshly-baked treats.
But if we happen to be in a high-inflation environment, are enough consumers going to buy them enough times?
Or will they start checking out other Cookie Franchises that offer less expensive cookies?
At the same time, on the franchise buyer side, the cost of a single Crumbl Cookies franchise business is on the high side.
With an investment in the $500,000 range, it’s critical for you to find out how many years it’s going to take to get your potential $500k investment back, along with how much profit you can expect to make.
Said another way, how many cookies will you need to sell to break even and start making money?
How To Get Your Answer
The best way to get that answer, along with all the facts you need, is to talk to their franchisees.
That means, at minimum, you need to have extensive conversations (by phone) with 12-15 of them. And you need to visit (and spend the day) with at least one franchisee.
With that in mind, if you’d like to get specific, proven research tips and techniques you can use right away to get the facts you need about any franchise you’re interested in, grab my Franchise Research Guide right now. I Guarantee you’ll become a smarter, better informed franchise buyer!
Finally, don’t even think of buying a Crumbl Cookies franchise because “Everybody likes cookies.” It’s not the right reason.
Instead, you need to base your buying decision on the business fundamentals of the company, along with your chances of being successful as a franchisee.
What I’m Hearing
I frequent several places online you probably don’t.
Some of these places (which I freely share in my Franchise Research Guide), feature commentary from consumers and sometimes even franchisees who own or have owned the franchise at one time or another.
In the case of Crumble Cookies, it’s mostly consumers who are commenting about the brand.
The general consensus is “the cookies used to be better,” and “management seems to be more focused on adding locations rather than perfecting their products.”
Of course those are opinions.
But you can certainly bring those topics up when you talk to franchisees. See what they say.
The Verdict
As to becoming the owner of a Crumbl Cookies franchise, I’m not all the way there.
That’s because it’s a large investment, and you need to sell an awful lot of cookies…like all the time, to have a decent chance at profitable franchise business ownership.
My Rating: 3 Crowns
Note: never base your yes or no decision on the purchase of a franchise solely on a franchise review. Instead, you need to base your decision on the facts you’ve found, your budget, and your determination to succeed as the owner of the most powerful business system ever created; franchising.
Crumbl Franchise FAQ’s
The initial investment to start a Crumbl Cookies franchise ranges from $227,666 to $567,833. This cost is for one unit.
As of the time of writing, there are more than 600 Crumbl Cookies franchises across the United States.
Crumbl Cookies is unique due to its commitment to using the finest, freshest ingredients in its baking, and its unique baking process that combines both time and temperature to produce a cookie that’s crispy on the outside and soft and chewy on the inside. Additionally, Crumbl’s menu boasts over 200 unique flavors that change on a weekly basis.
The franchisee is expected to be actively involved in the operation of the business. For at least the first 60 days of operation, the primary owner must personally participate in the direct operation and supervision of the franchise business. After this period, the franchise must be supervised by the primary owner or a designated manager who is certified by Crumbl Cookies.
Franchisees of this dessert franchise could face various fines for non-compliance, including fines for store uncleanliness, failing to provide documentation, unauthorized use of the brand or products, poor product quality, hygiene/dress code violations, and more. These fines can range from $250 to $1,000 depending on the specific infraction.
Read More Franchise Reviews From The Franchise King
(Image of the delicious-looking Crumble Cookie on top of this review comes courtesy of the Crumbl Facebook Page.)
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