Cookies By Design Franchise Cost, Revenue & Review 2026
- Investment
- $160K – $345K
- Disclosed sales
- not disclosed
- SBA charge-off
- 14.5%
- on 72 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Cookies by Design is a gifting retail franchise selling hand-decorated cookies and cookie bouquets for occasions and holidays. Franchisees run the shops, managing baking, decorating, order fulfillment, and delivery.
FranchiseVerdict summary · 2026
A COOKIES BY DESIGN franchise requires a total initial investment of $160K – $345K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 14.5% charge-off rate across 72 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $160K – $345K
- 17th pct Retail
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 20th pct Retail
- Units
- 38
- 17th pct Retail
- SBA charge-off
- 14.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $160K – $345K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 29/100 (higher is better). SBA loan charge-off rate of 14.5% across 72 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -5 franchised outlets in the latest year (0 opened, 5 closed) (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cookies Franchise Holdings LLC
- Parent company
- Cookies USA LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Designed Cookies, Inc.
- Prior franchisor entity
- CEO title
- Owner, Chairman, and Chief Executive Officer
- Andrew Berger
- Incorporated in
- DE
- HQ
- 110 Hillside Avenue, Suite 304, Springfield, New Jersey 07081
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $1.4M
- Most recent fiscal year
Overview
About
- CEO
- Andrew Berger
- Headquarters
- NJ
- Founded
- 2023
- FDD year
- 2025
- States available
- 22
Can you afford it, and what does the money buy?
Entry cost runs 25% below the typical retail franchise.
Source: FDD 2025 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $35K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% |
| Technology fee | $500 |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $18K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
COOKIES BY DESIGN makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one COOKIES BY DESIGN unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Retail median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -19.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Cookies By Design Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 38
- Opened
- 0
- Last reporting year
- Closed
- 5
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.2%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- -19.6%
- Net unit change over 3 years
- 3-yr CAGR
- -19.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 5
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 22 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
22
states with franchisees (per FDD Item 12)
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%
- on 72 loans · 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
- Typical loan rate
- 9.2%
- avg rate to borrowers
- Franchised industry avg
- 9.8%
- brand above franchise avg ↑
- Jobs supported
- 253
- 3.2 per loan
- Lender concentration
- 11%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in baked goods stores, franchised businesses charge off at 9.8% vs 17.7% for independents — franchising is associated with 45% lower SBA default risk in this category.
Vintage analysis
Cookies By Design charge-off rate by loan vintage
Top lenders financing Cookies By Design franchisees
Showing 3 of 44 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Cookies By Design from SBA 7(a) FOIA data.
- Principal loss rate
- 8.5%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 9.19%
- Avg chargeoff amount
- $67K
- Lender concentration
- 11.1%
- Job velocity
- 3.2 per $100K
- NAICS benchmark
- 19.0%
- NAICS 445291
- Jobs supported
- 253
Top SBA lendersTop lender holds 11% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Bank of America, National Association | 8 | $377K | 0.0% |
| 2 | PNC Bank, National Association | 5 | $403K | 0.0% |
| 3 | Manufacturers and Traders Trust Company | 5 | $557K | 0.0% |
| 4 | Readycap Lending, LLC | 3 | $385K | 33.3% |
| 5 | Regions Bank | 3 | $468K | 0.0% |
| 6 | The Huntington National Bank | 3 | $580K | 0.0% |
| 7 | Seacoast National Bank | 2 | $600K | 50.0% |
| 8 | Wells Fargo Bank National Association | 2 | $127K | 0.0% |
| 9 | JPMorgan Chase Bank, National Association | 2 | $112K | 50.0% |
| 10 | KeyBank National Association | 2 | $130K | 50.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 9 | 2 | 22.2% |
| INIndiana | 6 | 1 | 16.7% |
| NYNew York | 5 | 2 | 66.7% |
| PAPennsylvania | 5 | 0 | 0.0% |
| CACalifornia | 4 | 0 | 0.0% |
| ILIllinois | 4 | 1 | 25.0% |
| MIMichigan | 4 | 0 | 0.0% |
| OHOhio | 4 | 1 | 25.0% |
| WAWashington | 3 | 0 | 0.0% |
| COColorado | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 14.5% — 10% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Two matters disclosed: (1) Cakes By Design Inc. v. Cookies By Design Inc. et al. (Federal Court, Toronto, Canada, 2024) - IP infringement claim against predecessor and former franchisee, seeking >$50,000; franchisor is not a party. (2) Cookie Bouquet of Houston et al. v. Designed Cookies Inc. et al. (Harris County, TX, 2023) - former franchisees claiming FTC rule violations, fraud, breach of contract, and other claims against predecessor, seeking >$1,000,000.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Officers Andrew Berger and David Polonitza were officers/directors of Cosi, Inc. which filed Chapter 11 in September 2016 (emerged May 2017) and again in February 2020 (reinstated July 2022, plan confirmed July 2022, effective August 2022).
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 (p45) attaches parent Cookies USA LLC's UNAUDITED statements as of December 31, 2024 and its AUDITED statements for the fiscal year ended May 31, 2024; the franchisor, Cookies Franchise Holdings LLC (formed July 27, 2023), has no statements of its own. The block shown is the unaudited Jan - Dec 2024 statement (Exhibit E, p159-162): total income $1,353,022.11 = store sales $393,883.61 net of discounts -$21,278.77 + franchise revenues $980,417.27 + other income $10,207.23; net loss $90,569.81; equity $165,636.37; total assets $487,116.03 (QuickBooks-style internal statements bearing the 'prepared without an audit' legend). The audited year ended May 31, 2024 (p170-171, image pages) prints total revenues $308,413 (company-owned store sales only), a net loss of $599,505, total assets $1,651,439 and a members' deficit of $52,685. The franchisor's own Item 8 total revenues for the fiscal year ended May 31, 2024 were $220,495.60 (p19).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 100 verdict
- 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
- 05MEDHigh 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Mountainside, New Jersey |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 2 |
View Item 3 litigation summary
Two matters disclosed: (1) Cakes By Design Inc. v. Cookies By Design Inc. et al. (Federal Court, Toronto, Canada, 2024) - IP infringement claim against predecessor and former franchisee, seeking >$50,000; franchisor is not a party. (2) Cookie Bouquet of Houston et al. v. Designed Cookies Inc. et al. (Harris County, TX, 2023) - former franchisees claiming FTC rule violations, fraud, breach of contract, and other claims against predecessor, seeking >$1,000,000.
Items 10, 11
Training & Operations
- Classroom training
- 41 hrs
- On-the-job training
- 41 hrs
- Training location
- Plano, Texas or other approved location
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- CBD POS Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CBD POS Software
Item 20 · call current owners
Franchisee Contacts
44 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns COOKIES BY DESIGN?
COOKIES BY DESIGN is franchised by Cookies Franchise Holdings LLC. Its parent company is Cookies USA LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the COOKIES BY DESIGN FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the COOKIES BY DESIGN FDD and qualifies whose outlets they describe.
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 38 total units in the United States, including 37 franchised units and 1 company-owned units.
Is COOKIES BY DESIGN a good franchise to buy?
FranchiseVerdict rates COOKIES BY DESIGN as a D-grade franchise with a verdict score of 29 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.