Jersey Mike's Franchise Cost Breakdown (2026): Fees, Profits & Earnings
Quick Summary
Crumbl Cookies might be one of the most controversial, fast-growing franchise brands in America. Between federal service fee lawsuits, trademark legal battles, secondary resale market crazes, and private equity investments, one major question lingers over the brand: Is Crumbl a temporary social media fad, or is it here to stay?
Launching its franchise model in 2018, Crumbl exploded from a single Utah storefront into over 1,100 locations in just seven years—a growth pace faster than Dunkin' Donuts, Starbucks, or McDonald's in their early days. Leveraging a viral weekly rotating menu and its iconic pink box, Crumbl turned buying cookies into an event. However, with unit sales cooling down from peak hype levels, prospective buyers need to look closely at the math before investing $850k to $1.4M into a store.
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Yes, Crumbl Cookies is a 100% franchised fast-casual dessert model. System growth relies entirely on independent operators funding, launching, and running local stores. Corporate provides centralized app technology, national marketing, supply chain infrastructure, and weekly proprietary recipe updates.
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According to Crumbl's May 2026 Franchise Disclosure Document (FDD), the brand operates over 1,100 franchise locations across all 50 states, with zero corporate-owned stores:
- Explosive Scaling: From 2021 to 2023 alone, Crumbl opened an average of 276 stores per year.
- Zero Corporate Stores: Every single open location is owned and operated by franchisees.
Crumbl was founded in 2017 in Logan, Utah, by cousins Jason McGowan (a tech executive) and Sawyer Hemsley (a branding specialist). Lacking traditional baking backgrounds, they crowdsourced their recipes by baking test batches, handing them out to strangers in parking lots, and iterating based on public feedback until perfecting their flagship chocolate chip cookie.
Their first store opened in August 2017, and by February 2018—just six months later—they began franchising.
Crumbl cracked the social media algorithm better than almost any food brand of the decade:
- The Iconic Pink Box: Designed specifically to be Instagram- and TikTok-friendly.
- The Weekly Rotating Menu: Four to five specialty flavors drop every Sunday night, while the classic chocolate chip remains a staple.
- FOMO & Hype Culture: Turning cookie drops into weekly "episodes" generated massive organic review videos from creators and influencers across TikTok and YouTube.
In May 2025, private equity firm TSG Consumer Partners (investors in Planet Fitness, Poppi, and Fairlife) acquired a minority stake in Crumbl at a multi-billion-dollar valuation, signaling institutional confidence in the brand's long-term enterprise value.
Legal Drama & Corporate Controversies
Fast growth often brings legal friction, and Crumbl's FDD discloses several high-profile legal matters:
- The App "Service Fee" Class Action: In August 2023, a federal class-action lawsuit was filed against Crumbl in California. The suit alleges that Crumbl deceptively charged customers a hidden 2.95% "service fee" on mobile app and in-store kiosk orders without transparent upfront disclosure.
- The "Dirty Dough" Trademark War: In May 2022, Crumbl sued rival cookie franchise Dirty Dough over alleged trademark infringement and trade secret misappropriation (noting the rival founder's brother previously worked for Crumbl). The lawsuit settled confidentially in October 2023.
- Music Copyright & Texting Lawsuits: Crumbl has faced copyright infringement suits from major publishers (including Warner Music Group over unauthorized songs in social ads) alongside TCPA promotional text messaging claims.
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Crumbl stores typically occupy 1,600 to 2,000 square feet in high-visibility inline or end-cap retail centers.
According to Item 7 of the 2026 FDD, the total initial investment to open a single Crumbl location ranges from $848,000 to $1,400,000:
| Expense Category | Low Estimate | High Estimate |
| Initial Franchise Fee | $50,000 | $50,000 |
| Leasehold Improvements & Build-Out | $350,000 | $650,000 |
| Baking Equipment, POS & Signage | $180,000 | $320,000 |
| Initial Inventory & Supplies | $20,000 | $35,000 |
| 3-Month Operating Reserves | $30,000 | $60,000 |
| Total Estimated Investment | $848,000 | $1,400,000 |
What Are the Crumbl Franchise Fees?
- Initial Franchise Fee: $50,000
- Royalty Fee: 8% of gross sales
- National Brand Fund: 2.5% of gross sales
- Technology / App Fees: ~1% of gross sales
- Total Top-Line Corporate Cut: ~11.5% of gross revenues before paying rent, labor, or ingredients.
How Much Does A Crumbl Franchise Owner Make A Year?
To understand Crumbl's profitability, we have to look at the trend line between the 2025 FDD and the 2026 FDD:
1. Gross Revenue Trend (2024 vs. 2025 Performance)
- 2024 Performance (2025 FDD - 858 Reporting Stores):
- Average Gross Sales: $1,350,000
- Median Gross Sales: $1,300,000
- Top Performing Store: $3,470,000
- Lowest Performing Store: $383,000
- 2025 Performance (2026 FDD - 776 Reporting Stores):
- Average Gross Sales: $1,100,000
- Median Gross Sales: ~$1,080,000
- Top Performing Store: $3,400,000
- Lowest Performing Store: $365,000
Key Takeaway: Systemwide average sales dropped by roughly $250,000 per store (~18%) from 2024 to 2025 as early viral hype normalized and market density increased.
2. Profitability Breakdown (2025 FDD Historical Disclosures)
When Crumbl reported full net profit disclosures across 858 locations in their prior reporting period:
- Average Net Profit: $251,000 (18% Net Margin)
- Median Net Profit: $223,000 (17% Net Margin)
- Highest Store Net Profit: $763,000 (22% Margin)
- Lowest Store Net Profit: $10,000 (3% Margin)
Realistic Cash Flow Model (Current $1.1M Sales Average)
If an average store today generates $1,100,000 in revenue at an estimated 16% net profit margin:
If an owner manages the store directly as the full-time operator (saving a $50k–$70k general manager salary), total financial benefit climbs closer to $110,000–$130,000 per year.
Is Crumbl a Fad or Forever Brand?
The "Fad" Argument:
- Cooling Unit Revenues: Average sales declining from $1.35M to $1.1M shows that post-COVID viral hype is settling into baseline retail demand.
- Overpaying in the Secondary Resale Market: During 2021–2023, buyers were purchasing existing Crumbl stores for 2x to 4x revenue (rather than cash flow). In 2025 alone, 82 locations transferred owners—a record high for the brand as early owners sold near peak valuations.
The "Forever" Argument:
- Extremely Low Store Closures: Out of over 1,000 operational locations in 2025, only 8 stores closed (a closure rate under 1%). If the business model were collapsing, closures would be far higher.
- Built-in Re-engagement Engine: The weekly rotating menu structurally solves novelty fatigue. Customers always have a reason to return every 7 days to try new drops.
- Institutional PE Backing: TSG Consumer Partners does not back short-term internet trends; their minority buyout indicates long-term category-defining confidence.
Franchise Empire's Thoughts
At Franchise Empire, we look at franchise investments through capital leverage and long-term risk. Here is our honest verdict on Crumbl Cookies:
1. The Sales-to-Investment Ratio is Getting Tight
Our standard benchmark for a healthy brick-and-mortar franchise is a 2:1 sales-to-investment ratio ($2 in annual sales for every $1 spent upfront).
- Midpoint Startup Cost: ~$1,125,000 ($848k–$1.4M)
- Current Average Revenue: $1,100,000
At a 1:1 sales-to-investment ratio, single-store returns can be tight if you carry a heavy SBA debt load. To build significant wealth, franchisees need to own 3 or more units or secure lower-cost real estate build-outs.
2. Do Not Overpay on the Secondary Resale Market
If you buy an existing Crumbl store on the resale market, do not pay valuations based on 2021–2023 revenue multiples. Value the business strictly on current net EBITDA cash flow after manager salaries and debt service.
The Bottom Line
Crumbl has established itself as the undisputed leader in the specialty dessert space. While the era of effortless viral lines around the block has normalized into a standard retail business, well-capitalized multi-unit operators who run tight labor and food controls can still build a highly profitable portfolio.
