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.
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.
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:
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:
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.
Fast growth often brings legal friction, and Crumbl's FDD discloses several high-profile legal matters:
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 |
To understand Crumbl's profitability, we have to look at the trend line between the 2025 FDD and the 2026 FDD:
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.
When Crumbl reported full net profit disclosures across 858 locations in their prior reporting period:
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.
At Franchise Empire, we look at franchise investments through capital leverage and long-term risk. Here is our honest verdict on Crumbl Cookies:
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).
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.
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.
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.