The restaurant and food industry, especially bakeries, is always intriguing to entrepreneurs because of the massive market behind it.
Franchises are one way to enter this market with as low risk as possible. One of the popular brands in the United States in the bakery industry is Insomnia Cookies.
They have hundreds of locations across the United States. That’s why it might seem tempting to own one of their locations.
This article will go over Insomnia Cookies and whether they franchise or not.
Note: Insomnia Cookies has stopped franchising now.
Interested In an Alternate Franchise?
About Insomnia Cookies And Its History
Insomnia Cookies is a franchise bakery chain specialising in warm cookies, baked goods, and even ice cream.
The company was started in 2003 in New York by two students from the University of Pennsylvania. As of 2023, they have over 240 stores with headquarters in Pennsylvania.
The company was sold to Krispy Kreme in 2018 but continues to operate independently under its own name.
Insomnia Cookies were offered to the franchise, but they recently stopped offering them, turning the company into corporate-owned with all stores belonging to the company.
Insomnia Cookies Franchise Model
| Cost Or Fee | Amount |
|---|---|
| Franchise | USED TO |
| Franchise-Fee | NO (Doesn’t franchise anymore) |
| Estimated Outlets | 240+ |
How Much Does It Cost To Open an Insomnia Cookies Franchise?
Insomnia Cookies first started offering franchises in 2006, but they recently stopped franchising.
All of their stores are currently corporate-owned, and there is no way of opening an Insomnia Cookies franchise right now.
That’s why there are no costs associated with opening one of their stores.
Why Doesn’t Insomnia Cookies Offer Franchising?
There is no public information about why Insomnia Cookies stopped offering franchises.
However, most companies stop franchising or never franchise to keep the quality the same everywhere or simply just own the brand 100% instead of giving their rights.
It might be one of the reasons why Insomnia Cookies stopped offering franchises.
The company might decide to resume franchising in the future, but as of now, the reason behind stopping it is not clear. You can keep up to date on their website for future plans.
Insomnia Cookies Profit & Revenue
Insomnia Cookies’ estimated revenue per the last numbers is $3.2 billion annually.
Because the company is private and not public, there is no other detailed information about its latest profit and revenue numbers.
However, considering that the store has an average profit margin of 15% to 20%, we can generate some average annual profit numbers.
Since Insomnia Cookies also stopped franchising, there are no numbers available for revenue and profit per store, as well.
What Are Some Alternatives to Insomnia Cookies?
Insomnia Cookies might have stopped offering franchises, but there are other companies still offering franchises in the same industry.
If you are interested in opening a franchise in the cookie industry, here are some alternatives.
Tiff’s Treats
Tiff’s Treats started in 1999 from a college dorm and opened its own stores in 2003.
They now have 83 stores across several states in the United States, offering franchises for those interested.
You need between $72,729 and $148,280 as the initial investment to open up a Tiff’s Treats franchise store. This includes the $20,000 franchise fee and all other associated startup costs.
Cinnabon
Cinnabon is another cookie bakery that has been offering franchises since 1986. One of the oldest ones in the industry, and they were founded in 1985 in Atlanta, Georgia.
They currently have over 1,800 stores nationwide and offer all kinds of help to franchisees, such as training, financing, and so on.
The initial investment is between $232,400 and $621,400, which includes the $30,000 franchise fee.
Insomnia Cookies Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Mrs. Fields | $35,000 | 6% | $181,860-$493,850 |
| Great American Cookies | $15,000-$35,000 | 6% | $160,500-$461,135 |
| Insomnia Cookies | N/A | N/A | N/A |
Conclusion
It’s no doubt that Insomnia Cookies is a profitable brand with billions of dollars in annual revenue.
That’s why it could be a good idea to own one of their stores through franchising, but they recently stopped offering franchising to individuals.
However, alternatives like Tiff’s Treats and Cinnabon work in the same industry and offer to franchise if you are interested in the cookie industry.
FAQ
Why can’t I open an Insomnia Cookies franchise?
Insomnia Cookies stopped offering franchises as a company. That’s why no one can apply to be a franchisee and use their name.
In the future, there might be an opportunity again, but this is not clear when or if it will happen.
What is the franchise fee for an Insomnia Cookies franchise?
Insomnia Cookies is not currently franchising. That’s why you can’t open a franchise with them, and there is no franchise fee.
Will Insomnia Cookies offer franchising again in the future?
The company has no information about its plans for the future of its franchising system.
There could be franchising opportunities, but it’s unclear whether or when it will happen.
Sources
https://growjo.com/company/Insomnia_Cookies
https://www.cookiedelivery.com/about/our-story.aspx
https://en.wikipedia.org/wiki/Insomnia_Cookies
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.