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Crumbl Franchise ProfileRetail Franchises > Specialty Retail |
To open a Crumbl franchise, you should expect a total initial investment ranging from $460,166 to $1,266,333. This includes a franchise fee of $50,000. Additionally, you will need to have cash available between $150,000 and $400,000, and a net worth of $100,000 to $500,000. Understanding these financial commitments is crucial for aspiring franchisees looking to enter the cookie and dessert market.
Crumbl franchises have shown promising financial performance, with an average annual revenue per unit of $1,156,838. The median revenue is slightly lower at $1,100,536, while the range of annual revenues varies significantly from $543,554 to as high as $2,927,370. The breakeven time is approximately 12 months, and franchisees can expect an investment payback period of just 4 months, making it an attractive option for many investors.
As a Crumbl franchisee, you will be responsible for ongoing fees that include an 8% royalty fee on your revenue and a 2% marketing fee. These fees are essential for maintaining brand standards and supporting marketing efforts that drive customer traffic to your location. Being aware of these ongoing costs is vital for managing your franchise’s profitability effectively.
Crumbl has experienced significant growth, expanding its franchised units from 141 in 2021 to 688 in 2023. This rapid expansion showcases the brand's popularity and the increasing demand for its unique cookie offerings. The company has also added a few corporate units, indicating a balanced growth strategy that combines franchising with direct management. Understanding this growth trend can help potential franchisees gauge the brand's stability and market presence.
Crumbl Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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Crumbl Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2021 | 2022 | 2023 |
---|---|---|---|
Total Units | 142 | 326 | 690 |
Net Change YoY | 184 | 364 | |
Franchised Units | 141 | 325 | 688 |
Net Change YoY | 184 | 363 | |
Corporate Units | 1 | 1 | 2 |
Net Change YoY | 0 | 1 |
Crumbl Cookies is a rapidly growing franchise specializing in gourmet cookies, known for its rotating menu of flavors and high-quality ingredients. Since its establishment, Crumbl has expanded significantly, with a focus on creating a unique customer experience through a modern, inviting store design and a commitment to freshness. The brand emphasizes community engagement and often collaborates with local events to enhance its presence.
Starting a Crumbl franchise requires an initial investment ranging from $460,166 to $1,266,333. The initial franchise fee is $50,000, with ongoing royalty fees set at 8% of gross sales and a marketing fee of 2%. Franchisees should have liquid cash available between $150,000 and $400,000, alongside a net worth of $100,000 to $500,000 to qualify for ownership.
Crumbl franchisees can expect impressive financial performance, with average annual revenue per unit reported at $1,156,838. The median annual revenue is slightly lower at $1,100,536, while some units have achieved annual revenues as high as $2,927,370. This revenue potential underscores the brand's popularity and effective business model.
Franchisees can anticipate a breakeven period of approximately 12 months, reflecting the brand's strong market demand and operational efficiency. Additionally, the investment payback period is notably short at just 4 months, making Crumbl an attractive option for entrepreneurs seeking quick returns on their investment.
Crumbl has experienced remarkable growth in franchised units, increasing from 141 in 2021 to 688 in 2023. This expansion showcases the brand's appeal and the successful adoption of its franchise model. The company-owned units have also seen growth, rising from 1 to 2 in the same timeframe, indicating a balanced approach to corporate and franchise operations.
The financial metrics reveal that Crumbl maintains a gross profit margin of 37.9%, with operating expenses comprising 27.2% of revenue. This efficient cost structure supports a healthy EBITDA margin of 10.6%, which is critical for franchisees looking to optimize profitability. Understanding these operational insights can help potential franchisees make informed decisions about their investment in Crumbl.
Frequently Asked Questions
The initial investment for a Crumbl franchise ranges from $460,166 to $1,266,333, which includes the franchise fee and other startup costs.