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How Profitable is a Crumbl Cookies Franchise? 2022 Cost & Profits

Crumbl Cookies is one of the most popular quick-service restaurant franchise: it opened over 180 units over the past 4 years and the hype around its cookies and sweets keeps getting stronger, especially thanks to its solid social media following.

With average annual sales of $1,582,090 and an investment cost of (only) $507,224, Crumbl Cookies seems to be a great investment for franchisees. Is this really the case?

In this article we’ll have a look at how much you can make with a Crumbl Cookies franchise, how profitable the business really is and, more importantly, whether it’s a good investment. Let’s dive in!

Crumbl Cookies franchises: key figures

Franchise fee$50,000
Royalty fee8.0%
Marketing fee2.0%
Investment (mid-point)$507,224
Average sales$1,582,090
Sales to investment ratio3.1x
Payback period*2.1 years (excellent)
Minimum net worth$300,000
Minimum liquid capital$150,000
* using 15% net profit margin

🔎 How does Crumbl Cookies compare vs. other franchises? Check the ranking

Crumbl Cookies franchises: a brief introduction

Crumbl Cookies is a fast-growing gourmet cookie chain with over 600 stores in 47 states in the US.

Headquartered in Orem, Utah, Crumbl Cookies was founded by two cousins, Sawyer Hemsley and Jason McGowan, in 2017.

The cookie franchise specializes in making large cookies and ice cream and is best known for its award-winning milk chocolate chip cookie.

The Crumbl Cookies franchising journey began in 2018 under the brand name Crumbl LLC.

The chain store has taken the market by storm, and as of 2022, it had 689 bakeries in the US. It is one of the fastest-growing cookie franchises with a unique social media marketing strategy.

Crumbl Cookies franchise: pros and cons

Operating a Crumbl Cookies franchise has some advantages and disadvantages.

Pros

  • Fast-growing brand: The Crumbl Cookies has grown very fast. Launched just months before the COVID-19 pandemic, many would have expected its growth to dive. But this was not the case. In the four years since its inception, Crumbl Cookies has opened over 180 units across the US. This shows how popular the brand is becoming among cookie enthusiasts. And from the look of things, the trend will just get better.
  • Social media following: One special fact about Crumbl Cookies is its social media presence. Since 2020, it has gained over 1 million followers on TikTok, a milestone not achieved by many franchisors. They share viral videos of their savory cookie flavors and reach a huge audience, mostly young people. Their unique adoption of social media marketing is a real game changer in converting leads into loyal customers.
  • Weekly rotating menu: Since its launch, Crumbl Cookies has adopted its trademark one-week rotating menu. Every Sunday, there’s a new menu for the coming week, but its award-winning milk chocolate chip cookie always remains a favorite. This is fun and has always kept customers anxious to visit the chain store to enjoy new flavors.
  • Many varieties: Crumbl Cookies has a rich and diversified menu. With its weekly rotating menu, Crumbl offers more than 170 flavors, including themed cookie lineups, e.g., breakfast cookies such as waffle and berry crunch. This keeps customers coming back to taste new flavors, restock, or rediscover new products each week.

Cons

  • Still a new brand: The Crumbl Cookies brand has only been there for four years. Though it has achieved robust growth and its sales have been very promising, it is still very young. Many entrepreneurs may feel that, despite posting positive success, it has not stood the test of time. Who knows whether competition will pop up and dwindle its growth? Only time can tell.
  • Quality challenge: The constant change of their menu every week can compromise the quality of their products. Therefore, franchisees may overlook the quality of the cookies in the process of accommodating the following week’s menu.
  • Training challenges: Maintaining the constant weekly menu rotation routine may not be easy. It requires franchise owners and employees to keep training. This is tiresome, expensive, and, to some extent, boring.
  • Weekly menu rotation challenge: Though it’s a fun marketing method, changing its menu every week can be very hectic. It requires the franchisee to have consistently trained staff, which may not be practical. In addition, it may cause a lot of waste when inventories are not fully utilized within the week.

How much does it cost to open a Crumbl Cookies franchise?

You must invest on average a total of $507,225 to open a Crumbl Cookies franchise, which includes the initial franchise fee of $50,000. 

The latest FDD gives us a detailed breakdown of the various investment costs. For example, the investment amount covers everything to open a bakery business; for example, training fees, real estate improvements, furniture, equipment, opening inventory, rent for the first 3 months, etc.

Here’s a summary of the different costs you should pay for:

Type of costInvestment amount
Initial franchise fee$25,000 – $50,000
Formation costs$213,800 – $538,400
Operating expenses$83,,866 – $103,333
Total$322,666 – $691,783
Source: 2022 FDD

What is the average turnover of a Crumbl Cookies franchise?

A Crumbl Cookies restaurant makes on average $1,582,090 in sales per year.

This number represents the median annual sales value of 140 Crumbl Cookies franchisees operated in 2021. Of course this is purely an average and the annual sales your franchise can generate depends on various factors like location, size of the restaurant, competition, etc.

Indeed, in 2021 the lowest annual sales was $734,278 vs. up to $3,639,139 for the most successful restaurant.

How profitable is a Crumbl Cookies franchise?

As per our analysis, the average Crumbl Cookies franchise had an adjusted EBITDA margin of ~27% of sales, that translates to $419,552 in profits per year. This is an adjusted EBITDA that takes into account COGS, labor costs, rent and fees.

Profit-and-lossAmount ($)As % of sales
Sales$1,582,090100%
COGS$(395,523)25%*
Labor$(458,806)29%*
Rent$(150,000)
Royalty + marketing fees$(158,209)10%
Adjusted EBITDA$419,552~27%
* Industry average

How much do Crumbl Cookies franchisees make?

Adjusted EBITDA isn’t net profit. The amount you can expect to earn as a shareholder (the franchisee) is net profit instead.

Unfortunately, as for most franchises, the Franchise Disclosure Document is quite limited when it comes to the financial information it discloses. Therefore we have to make some assumptions here instead.

As per our analysis, the average net profit margin for a Crumbl Cookies is 15% of sales. This means that franchisees can earn on average $237,000 per year in profits.

Yet bear in mind this number doesn’t include any potential debt repayment you must make if you took on a loan to pay for the investment cost.

For example, assuming you took on a $400,000 loan (like a SBA loan) over 10 years, you would earn around $190,000 per year instead.

Is a Crumbl Cookies franchise a good investment?

Profits don’t tell us much about whether opening a Crumbl Cookies franchise is a good investment. Instead we need to look at the investment payback period: the number of years it takes for a franchisee to recoup her/his original investment.

As per our calculations, Crumbl Cookies franchises have an excellent payback period: it takes 2.1 years to recoup your investment ($507,224 on average).

Therefore we can argue that Crumbl Cookies franchises are very good investment from a financial standpoint.

Of course, these numbers are average and based on the latest FDD. Your franchise may have a different payback period: your store may be more or less profitable than the average for example. Indeed, turnover and profits vary based on a number of factors like location, competition, efficiency, costs, etc.

Download the Crumbl Cookies business plan and get your franchise funded

Including a 5-year financial plan built with the latest Franchise Disclosure Document numbers

How does it compare vs. other franchises?

FranchiseInvestment ($)Sales ($)S/I RatioPayback (years)Min. net worth ($)Min. liquid capital ($)
Chick-Fil-Ahttps://sharpsheets.io/blog/chick-fil-a-franchise-costs-profits/Chicken1,363,5104,227,4173.12.2--
Dunkin' Donutshttps://sharpsheets.io/blog/dunkin-donuts-franchise-costs-profits/Donuts779,0001,056,5211.44.9500,000250,000
Domino'shttps://sharpsheets.io/blog/dominos-franchise-profits-costs/Pizza398,7251,286,4283.23.9250,00075,000
Krispy Kremehttps://sharpsheets.io/blog/krispy-kreme-franchise-costs-profits/Donuts824,0003,400,0004.11.62,000,000300,000
Little Caesarshttps://sharpsheets.io/blog/little-caesars-franchise-costs-profits/Pizza1,022,850798,1130.88.5350,000150,000
Wingstophttps://sharpsheets.io/blog/wingstop-franchise-costs-profits/Chicken631,6951,460,4592.32.91,200,000600,000
Steak 'n Shakehttps://sharpsheets.io/blog/steak-n-shake-franchise-costs-profits/Burger, Milshakes815,6261,346,3321.74.01,500,000500,000
Crumbl Cookieshttps://sharpsheets.io/blog/crumbl-cookie-franchise-cost-profits/Sweets507,2241,582,0903.12.1300,000150,000
Taco Bellhttps://sharpsheets.io/blog/taco-bell-franchise-costs-profits/Mexican462,4131,650,0003.61.91,500,000750,000
Popeyeshttps://sharpsheets.io/blog/popeyes-franchise-costs-profits/Chicken1,095,7831,444,6171.35.11,000,000500,000
Smoothie Kinghttps://sharpsheets.io/blog/smoothie-king-franchise-costs-profits/Smoothie688,108573,2690.88.0300,000100,000
Jersey Mike'shttps://sharpsheets.io/blog/jersey-mikes-franchise-costs-profits/Sandwich574,3231,220,5862.14.7300,000100,000
Nothing Bundt Cakeshttps://sharpsheets.io/blog/nothing-bundt-cakes-franchise-costs-profits/Sweets538,6501,307,2802.42.7600,000150,000
Jimmy John'shttps://sharpsheets.io/blog/jimmy-johns-franchise-costs-profits/Sandwich513,650874,8451.73.9300,00080,000
Texas Roadhousehttps://sharpsheets.io/blog/texas-roadhouse-franchise-costs-profits/Steakhouse4,209,5002,955,5340.79.5n.a.200,000
Kung Fu Teahttps://sharpsheets.io/blog/kung-fu-tea-franchise-costs-profits/Bubble tea250,125353,2371.44.7n.a.25,000
Wendy’shttps://sharpsheets.io/blog/wendys-franchise-cost-profits/Burger1,374,8331,791,2311.35.11,000,000500,000
Burger Kinghttps://sharpsheets.io/blog/burger-king-franchise-costs-profits/Burger1,242,9501,215,9701.06.81,500,000500,000
Sonic Drive-Inhttps://sharpsheets.io/blog/sonic-drive-in-franchise-costs-profits/Burger1,467,0831,617,0001.16.01,000,000500,000
Panera Breadhttps://sharpsheets.io/blog/panera-bread-franchise-costs-profits/Sandwich2,290,5002,599,4321.15.97,500,0003,000,000
Pizza Huthttps://sharpsheets.io/blog/pizza-hut-franchise-costs-profits/Pizza935,575906,9111.06.9700,000350,000
KFChttps://sharpsheets.io/blog/kfc-franchise-costs-profits/Chicken1,802,0501,567,4740.97.71,500,000750,000
Arby’shttps://sharpsheets.io/blog/arbys-franchise-costs-profits/Sandwich1,184,9751,126,2631.07.01,000,000500,000
Dairy Queenhttps://sharpsheets.io/blog/dairy-queen-franchise-costs-profits/Ice Cream1,404,2201,143,1800.88.2750,000400,000
Jack in the Boxhttps://sharpsheets.io/blog/jack-in-the-box-franchise-costs-profits/Burger2,195,8001,755,5030.812.51,000,000250,000
Papa John’shttps://sharpsheets.io/blog/papa-johns-franchise-costs-profits/Pizza353,6951,101,1273.12.1750,000250,000
Zaxby’shttps://sharpsheets.io/blog/zaxbys-franchise-costs-profits/Chicken534,7502,229,1874.22.41,000,000500,000
Hardee’shttps://sharpsheets.io/blog/hardees-franchise-costs-profits/Burger1,759,0001,147,9750.710.21,000,000300,000
Culver’shttps://sharpsheets.io/blog/culvers-franchise-costs-profits/Burger4,044,5003,051,7620.88.82,000,000350,000
Five Guyshttps://sharpsheets.io/blog/five-guys-franchise-costs-profits/Burger511,2251,203,3662.42.8500,000250,000
Carl’s Jr.https://sharpsheets.io/blog/carls-jr-franchise-costs-profits/Burger1,860,3351,419,5160.88.71,000,000500,000
Baskin-Robbinshttps://sharpsheets.io/blog/baskin-robbins-franchise-costs-profits/Ice Cream465,100316,8150.79.8250,000125,000
IHOPhttps://sharpsheets.io/blog/ihop-franchise-costs-profits/Pancakes2,058,3021,553,3110.88.81,500,000500,000
Applebee’shttps://sharpsheets.io/blog/applebees-franchise-costs-profits/Casual American5,137,9662,356,9650.514.51,000,000500,000
Denny'shttps://sharpsheets.io/blog/dennys-franchise-costs-profits/Casual American3,785,4591,639,5490.415.41,000,000500,000
Papa Murphy'shttps://sharpsheets.io/blog/papa-murphys-franchise-costs-profits/Pizza433,174580,4411.35.0275,000125,000
Auntie Anne'shttps://sharpsheets.io/blog/auntie-annes-franchise-costs-profits/Pretzels229,692343,1351.55.6300,000100,000
Firehouse Subshttps://sharpsheets.io/blog/firehouse-subs-franchise-costs-profits/Sandwich613,186888,3561.44.6350,000100,000
Tropical Smoothie Cafehttps://sharpsheets.io/blog/tropical-smoothie-cafe-franchise-costs-profits/Smoothie430,500961,9692.23.0350,000125,000
Marco’s Pizzahttps://sharpsheets.io/blog/marcos-pizza-franchises-costs-profits/Pizza437,625895,5232.03.3400,000100,000
Cinnabonhttps://sharpsheets.io/blog/cinnabon-franchises-costs-profits/Sweets276,062394,8971.45.8300,000120,000
Cold Stone Creameryhttps://sharpsheets.io/blog/cold-stone-creamery-franchise-costs-profits/Ice Cream310,956417,5881.35.0250,000100,000
Jambahttps://sharpsheets.io/blog/jamba-franchise-costs-profits/Smoothie414,562597,0281.47.7300,000100,000
Church’s Chickenhttps://sharpsheets.io/blog/churchs-texas-chicken-fees-sales-costs/Chicken1,195,1471,395,0881.25.71,000,000300,000
Moe’s Southwest Grillhttps://sharpsheets.io/blog/moes-southwest-grill-franchises-costs-profits/Mexican792,3701,013,3611.35.21,000,000100,000
Tim Hortonshttps://sharpsheets.io/blog/tim-hortons-franchises-costs-profits/Coffee1,242,7501,188,2401.07.0500,000100,000
Checkers & Rally'shttps://sharpsheets.io/blog/checkers-franchises-profits-sales-costs/Burger837,8471,039,7731.25.4750,000250,000
Charleys Philly Steakshttps://sharpsheets.io/blog/charleys-philly-steaks-costs-profits/Sandwich509,806786,2331.54.3500,000100,000
Buffalo Wild Wingshttps://sharpsheets.io/blog/buffalo-wild-wings-costs-profits/Chicken3,546,9002,534,1480.79.31,500,000750,000
Rita's Icehttps://sharpsheets.io/blog/ritas-ice-franchise-costs-profits/Ice Cream215,839248,3401.25.8300,000100,000
A&W Restaurantshttps://sharpsheets.io/blog/aw-restaurants-franchises-costs-profits/Burger786,750851,2121.16.2350,000150,000
Hungry Howie’s Pizzahttps://sharpsheets.io/blog/hungry-howies-pizza-franchise-costs-profits/Pizza419,682806,8991.93.5750,000200,000
Bojangleshttps://sharpsheets.io/blog/bojangles-franchise-costs-profits/Chicken1,658,0001,801,0571.16.11,000,000500,000
McAlister’s Delihttps://sharpsheets.io/blog/mcalister-deli-franchise-costs-profits/Sandwich1,424,9631,865,8611.35.11,000,000500,000
Round Table Pizzahttps://sharpsheets.io/blog/round-table-pizza-franchise-costs-profits/Pizza783,2501,037,8161.35.0500,000200,000
Qdoba Mexican Eatshttps://sharpsheets.io/blog/qdoba-mexican-eats-franchise-costs-profits/Mexican659,250972,9621.54.5
Freddy’shttps://sharpsheets.io/blog/freddys-franchise-costs-profits/Burger1,453,0401,792,9291.25.41,000,000400,000
Taco John’shttps://sharpsheets.io/blog/taco-johns-franchise-costs-profits/Mexican1,119,0001,124,9801.06.61,000,000400,000
Scooter’s Coffeehttps://sharpsheets.io/blog/scooters-coffee-franchise-costs-profits/Coffee1,143,250797,1010.79.6500,000200,000
Einstein Bros. Bagelshttps://sharpsheets.io/blog/einstein-bros-bagels-franchise-costs-profits/Sandwich750,075885,0111.25.71,000,000536,500
Great American Cookieshttps://sharpsheets.io/blog/great-american-cookies-franchise-costs-profits/Sweets385,275452,7711.25.7250,000100,000
Wienerschnitzelhttps://sharpsheets.io/blog/wienerschnitzel-franchise-costs-profits/Hot dogs873,300880,9801.06.6600,000250,000
Blaze Pizzahttps://sharpsheets.io/blog/blaze-pizza-franchise-costs-profits/Pizza865,4501,096,4321.37.9500,000300,000
Wetzel's Pretzelshttps://sharpsheets.io/blog/wetzels-pretzels-franchise-costs-profits/Pretzels377,571748,8572.03.4300,00050,000
Pizza Ranchhttps://sharpsheets.io/blog/pizza-ranch-franchise-costs-profits/Pizza3,268,3001,174,0880.418.61,000,000297,000
Del Tacohttps://sharpsheets.io/blog/del-taco-franchise-costs-profits/Mexican1,406,8501,345,3411.07.02,000,000500,000
Schlotzsky’shttps://sharpsheets.io/blog/schlotzskys-franchises-costs-profits/Healthy, Salads1,102,9331,053,3330.322.21,000,000300,000
Captain D’shttps://sharpsheets.io/blog/captain-ds-franchise-profits-costs/Seafood982,7781,067,8160.419.01,000,000350,000
Biggby Coffeehttps://sharpsheets.io/blog/biggby-coffee-franchise-profits-costs/Coffee310,575648,3520.320.0300,000100,000
Which Wichhttps://sharpsheets.io/blog/which-wich-franchises-profits-costs/Sandwich330,375281,8860.322.2500,000150,000
Marble Slab Creameryhttps://sharpsheets.io/blog/marble-slab-franchises-costs-profits/Ice Cream407,360251,0520.416.7250,000100,000
Mountain Mike's Pizzahttps://sharpsheets.io/blog/mountain-mikes-franchise-profits-costs/Pizza410,900865,7130.320.0300,000100,000
Huddle Househttps://sharpsheets.io/blog/huddle-house-franchise-cost-profits/Diner988,743712,4280.513.3600,000300,000
L&L Hawaiian Barbecuehttps://sharpsheets.io/blog/ll-hawaiian-barbecue-franchises-costs-profits/BBQ334,350612,9210.333.3500,000150,000
Chicken Salad Chickhttps://sharpsheets.io/blog/chicken-salad-chick-franchises-costs-profits/Healthy, Salads651,0001,202,0200.320.0750,000250,000
Golden Chickhttps://sharpsheets.io/blog/golden-chick-franchises-costs-profits/Chicken362,975917,6092.52.62,000,000425,000
Perkinshttps://sharpsheets.io/blog/perkins-franchise-costs-profits/Diner1,922,7281,729,2460.97.41,500,000500,000
Waba Grillhttps://sharpsheets.io/blog/waba-grill-franchises-costs-profits/Teryaki454,000466,5361.06.51,000,000250,000
Bruster’s Ice Creamhttps://sharpsheets.io/blog/brusters-franchises-profits-costs/Ice Cream663,925466,6960.79.5375,000150,000