Cookies By DesignFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A COOKIES BY DESIGN franchise requires a total initial investment of $160K – $345K, including a $30K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 14.5% charge-off rate across 72 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $160K – $345K
- 16th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- N/A
- Units
- 37
- 15th pct Retail
- SBA default
- 14.5%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Franchised units fell from 46 to 37 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $160K – $345K including a $30K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 14.5% across 72 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Cookies Franchise Holdings LLC
- Parent company
- Cookies USA LLC
- Incorporated in
- DE
- HQ
- 110 Hillside Avenue, Suite 304, Springfield, New Jersey 07081
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $308K
- vs $1.4M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate retail locations (or kiosks) specializing in custom-designed cookie gifts, typically featuring decorated cookies arranged as floral or decorative arrangements. Day-to-day operations include custom cookie design, baking/fulfillment, order processing, local marketing, and seasonal holiday sales management.
- CEO
- Andrew Berger
- Headquarters
- NJ
- Founded
- 2023
- FDD year
- 2025
- States available
- 22
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $25K | $35K |
| Equipment, build-out, other | $105K | $280K |
| Total initial investment | $160K | $345K |
Source: COOKIES BY DESIGN 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $160K – $345K
- Better than avg vs category
- Liquid capital req'd
- $25K – $35K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- Greater of 6% of Gross Sales or $500
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Retail averages
How Cookies By Design Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 0
- Last reporting year
- Closed
- 5
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- -11.9%
- Net unit change last year
- 3-yr CAGR
- -19.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 72
- Loan volume
- $8.0M
- Median loan
- $90K
- 50th percentile
- Charge-off rate
- 14.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.5%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 44
- Defaults
- 10
Vintage analysis
Cookies By Design charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Cookies By Design's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 18-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Cookies by Design presents high risk due to rapid unit attrition, active litigation alleging fraud and FTC violations, missing financial disclosures, and franchisor going concern status—suggesting a contracting system with unresolved legal exposure and deteriorating unit profitability.
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MEDSystem contracting sharply: 11.9% unit decline YoY (37 units remaining) indicates accelerating franchisee exits and loss of confidence
- 02HIGHDual litigation against predecessor franchisor: IP infringement claim in Canada plus Texas class action alleging breach of contract, fraud, and FTC violations creates legal/reputational risk and potential successor liability
- 03MEDNo financial transparency: Neither average unit revenue nor net income disclosed in FDD Item 19, preventing ROI validation and suggesting poor unit economics
- 04MINORMinimum royalty floor of $500/month ($6,000 annually) creates fixed cost burden on low-volume locations, especially problematic for declining system
- 05HIGHGoing concern status indicates franchisor financial instability, raising questions about support, marketing, and system longevity
- 06MEDHigh investment range ($160K–$345K) with no disclosed AUV makes ROI timeline and breakeven analysis impossible to project
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Zip Codes |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 41 hrs
- On-the-job training
- 41 hrs
- POS system
- CBD POS Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CBD POS Software
Item 20 · call current owners
Franchisee Contacts
57 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
COOKIES BY DESIGN · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a COOKIES BY DESIGN franchise?
The total investment to open a COOKIES BY DESIGN franchise ranges from $160K – $345K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do COOKIES BY DESIGN franchise owners earn?
COOKIES BY DESIGN does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is COOKIES BY DESIGN's franchise failure rate?
Based on SBA 7(a) loan data, COOKIES BY DESIGN has a charge-off rate of 14.5% across 72 loans, meaning 14.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many COOKIES BY DESIGN franchise locations are there?
As of their most recent FDD filing, COOKIES BY DESIGN has 37 total units in the United States, including 46 franchised units and 1 company-owned units.
Is COOKIES BY DESIGN a good franchise to buy?
FranchiseVerdict rates COOKIES BY DESIGN as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.