Are you looking for a great investment opportunity in the food and beverage industry? Did you stumble upon Crumbl Cookie and are wondering if it is worth investing in? We got you!
In this guide on How much does a Crumbl Cookie franchise owner make, you will find information about profit potential, franchise requirements, and investment needed, among other things.
So make sure you read till the end!
About Crumbl Cookie
Crumbl Cookie was founded by cousins Jason McGowan and Sawyer Hemsley in 2017, and their first store was opened in Logan, Utah.
In just a few years, Crumbl Cookie has expanded to over 600+ bakeries in 47 states nationwide, making it one of the fastest cookie companies in the nation.
But what is Crumbl Cookie exactly? As the name suggests, Crumbl Cookie is a cookie company focused on developing delicious and unique cookies inspired by popular foods, desserts, and other flavors.
The company is popular for its weekly rotating menu that keeps the customers coming for more.
Crumbl Cookie offers a franchise opportunity, and if you are interested in investing in it, then keep reading to find out the nitty-gritty of Crumbl Cookie franchise.
Also Read: Nothing Bundt Cakes Franchise
How Much Does A Crumbl Cookie Franchise Owner Make?
The profit earned by Crumbl Cookie franchise owner may vary depending on their location, operating expenses, size, etc.
However, on average Crumbl Cookie franchise owner make $279,212 annually and has a potential to earn in millions.
Interested In Crumbl Cookie Franchise?
How Much Does A Crumbl Cookie Employee Earn?
The salary of Crumbl Cookie Employees varies greatly depending on their position, department, location, skills, etc.
However, on average, a Crumbl Cookie Employee makes a minimum of $9.62 an hour and a maximum of $24.65 an hour.
If we see it in yearly terms, then Crumbl Cookie employees at entry-level positions make $20,000 per year, while one at a high-level position makes $80,207 per year.
How Much Does a Crumbl Cookie Franchise Cost?
The total investment amount required to open a Crumbl Cookie Franchise is $227,666 to $567,833. Here’s a detailed breadown of Crumbl Cookies Franchise:
|Initial Franchise Fee||$50,000 ($25,000 if signed before jun 30 of 2022)|
|Initial training fees, and travel, lodging, food, and other expenses while training||$20,000 – $30,000|
|Initial Tech and other Equipment Package||$23,300 – $167,650|
|Real Estate and Improvements||$75,000 – $250,000|
|Professional Fees||$8,000 – $15,000|
|Rent (3 months)||$16,666 – $83,333|
|Equipment, furniture, fixtures, decor, and supplies||$75,000 – $100,000|
|Signs||$6,500 – $15,000|
|POS system, computer hardware & software||$3,500 – $8,000|
|Opening Inventory||$5,000 – $10,000|
|Misc. Opening Costs||$2,500 – $5,000|
|Additional Funds (3 months)||$10,000|
Crumbl Cookie Franchise Financial Requirements and Fees
|Fees or Expenses||Amount|
|Net Worth||Not available|
|Total Investment||$227,666 to $567,833|
Pros & Cons Of Crumbl Cookie Franchise
Pros Of Crumbl Cookie Franchise
- Low start-up cost
- High-profit potential
- Fast-Growing Chain
- Offers financial transparency
- Easy onboarding process
- Effective marketing and branding strategies
- Low initial franchise fee
Cons Of Crumbl Cookie Franchise
- The weekly rotating menu calls for frequent training
- Adapting to the weekly rotating menu might be hectic
Crumbl Cookie Franchise Average Revenue & Profit
Crumbl Cookie disclosed its sales figure for 2021 for 140 franchise locations. Based on those 140 franchise locations, here’s the sales figure of the Crumbl Cookie franchise::
|2021 Calendar Year||Average||High||Median||Low|
As per the table, we can see that the total median revenue for the calendar year 2021 was $1,687,731 at a gross profit margin of $749,555 and then a net profit of $279,212 per year.
So on the low end, even the worst-performing Crumbl Cookie franchise owner made a net profit of $33,260, while the best-performing Crumbl Cookie franchise owner made a $357,512 net profit in the year 2021.
And we talk about the average revenue and profit of Crumbl Cookie company, then here’s the breakdown for you.
So during the same year, the company collected $30 million in royalty fees, $2.5 million in franchise fees, $8,216,207 in marketing and advertising fee, and $422,105 in other revenue.
So the total revenue of Crumbl Enterprises from 327 locations was $46.6 million in the U.S., and there total net income was $22,424,481 in the year 2021.
Crumbl Cookie Franchise Failure Rate
To see the failure rate of Crumbl Cookie Franchise, let us have a look at the number of outlets that opened and closed during 2019-2021 below:
|Outlet type||Year||Outlets at the Start of the Year||Outlets at the End of the Year||Net Change|
As you can see, Crumbl Cookie Franchise saw stunning growth in 2021, and no Crumbl Cookie store shut down even during Covid.
Considering the data from these three years, we can say that Crumbl Cookie Franchise has a zero failure rate, and even the worst-performing outlets earn profits.
Crumbl Cookie Franchise Payback Period
To determine the Crumbl Cookie franchise payback period, let us do some calculations. Considering all the costs such as the initial franchise fees, ongoing monthly fees, minimum liquidity, etc.
|AVERAGE REVENUE PER OWNER||$1,687,731|
|AVERGAGE PROFIT PERCENTAGE||10-20%|
|AVERGAGE PROFIT PER YEAR||$279,212|
|AVERAGE PAYBACK PERIOD||1.5 Years|
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 397749/279212 = 1.42 = 1.5 Years based on median
The average investment for a Crumbl Cookies Franchise is $397,749 and the average revenue per owner is $1,687,731.
With an average profit percentage of 10-20%, the average profit per year is $279,212.
This means that the average payback period for a Crumbl Cookie Franchise is 1.5 years, as the total investment of $397,749 would be recouped within this period.
Facts About Crumbl Cookie
- Crumbl Cookie is the fastest-growing bakery chain, and within just a few years since its opening in 2017, the company has grown to more than 600+ bakeries in a total of 47 states nationwide.
- Crumbl Cookie is highly tech-driven and has 3.6M followers on Instagram and 6.6M followers on TikTok.
- Crumbl’s signature snacks are baked daily and are served fresh out of the oven.
- The company does not offer vegan, Kosher, or gluten-free options as of yet.
- Most of the Crumbl’s cookies that are a part of the weekly rotating menu are limited-time offerings, and you may or may not see the cookie again on the menu.
- Crumbl Cookie also serves ice-creams and sells Crumbl Water and much other merchandise.
- The founders of Crumbl Cookie spent thousands of dollars to come up with perfect cookie recipes before launching their business.
- Crumbl Cookies are not just cookies but have pies, cakes, tarts, and even breakfast disguised as a cookie.
- In 2022, 11 franchises were fined by the U.S. Department of Labor for violating child labor laws.
What Is Crumbl Cookie Known For?
Crumbl Cookie is a bakery chain that is famous for its out-of-the-world cookies (especially its milk chocolate chip cookie) and for transforming cakes into cookies.
It is well known for its unique concept of a rotating menu so that you can explore 4-5 new flavors each time you go there.
The company is also famous for its iconic pink packaging that fits each cookie side-by-side perfectly in its box.
Their box’s unique shape and the brand’s signature pink coloring make it quite Instagrammable and recognizable.
Here are some of the most popular Crumbl Cookies worth trying:
- Snickerdoodle Cupcake
- Peanut Butter featuring Snickers
- Birthday Cake featuring Oreo
- Hawaiian Rainbow Cake
- Hawaiian Rainbow Cake
- Orange Milkshake
- Chocolate Cake
- Cookie Dough
- Pineapple Whip
Is Crumbl Cookie franchise Profitable?
Yes, Crumbl Cookie has a unique selling point of a weekly rotating menu, and this, coupled with their delicious-tasting cookies, keeps the customers coming in for more.
Even if we look at the profitability statistics of Crumbl Cookie franchise for the year 2021, then we can conclude that a Crumbl Cookie franchise owner can easily make an average net profit of $279,212 annually.
And in the above section, we also saw the number of Crumbl Cookie outlets that opened during 2019-2021, and according to that, not even a single outlet closed down, not even in Covid.
All these facts make it clear that Crumbl Cookie Franchise is a profitable franchise opportunity in the Food & Beverage industry.
Crumbl Cookie Franchise Earning Potential
In the year 2021, Crumbl Cookie franchise owners earned a total revenue of $1,582,090 and a net profit of $279,212 on average.
The highest total revenue made was $3,639,139, and the highest profit made was $618,102. And the lowest total revenue made was $734,278, and the lowest net profit made was $33,260.
So even the worst performing Crumbl Cookie franchise store makes a net profit. And we estimate that the Crumbl Cookie Franchise Earning Potential is as much as $1 million per year!
In this article on How Much Does A Crumbl Cookie Franchise Owner Make, we saw all the franchise details of Crumbl Cookie in great detail. And as per that, here is what we conclude:
Crumbl Cookie franchise requires less initial investment, makes good amounts of profit, and has a high potential to grow and make even more money.
The qualification process is not that strict, and even the repayment period for the initial investment is less.
There is no major flaw in the Crumbl Cookie franchise, and you can definitely go for it.
Frequently Asked Question
What percentage of royalty fees does Crumbl Cookie charge?
Crumbl Cookie charges a royalty fee of 8% as per the average industry standard of (8-9%). Along with this, they also charge a marketing fee of 2%.
What is Crumbl Cookie's initial franchise fee?
Crumbl Cookie charges $25,000 as their initial franchise fee, which is not very high as per the industry standard of $5000-$1 million.
Does Crumbl Cookie offer third-party financing?
No, the company does not offer any indirect or direct third-party financing opportunity, nor does it guarantee any lease, note, or obligation for obtaining funding. ((https://franchisetheory.com/crumbl-franchise-cost-fees-and-profit/))
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.