Cookies By Design Franchise Cost, Revenue & Review 2026
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. 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]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $160K – $345K
- 17th pct Retail
- Avg gross sales
- N/A
- Royalty
- N/A
- 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 avg · 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.
- RETURNSExhibit E contains only the UNAUDITED financials of parent Cookies USA LLC as of/for the period ended Dec 31, 2024 (single year), bearing the statutory 'prepared without an audit / no CPA opinion' legend. The audited May 31, 2024 statements referenced in Item 21 are not present in the extracted text. 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; figures are QuickBooks-style internal statements.
- RISKVerdict F (Weakest tier), verdict score 19/100 (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).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cookies Franchise Holdings LLC
- Parent company
- Cookies USA LLC
- 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
- $220K
- vs $1.4M prior 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 39% 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
- Months 1-6: 6% of Gross Sales; months 6 through end of te…
- 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 |
| 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one COOKIES BY DESIGN unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
16%
Below the 30–60% attractive-franchise band
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
Exhibit E contains only the UNAUDITED financials of parent Cookies USA LLC as of/for the period ended Dec 31, 2024 (single year), bearing the statutory 'prepared without an audit / no CPA opinion' legend. The audited May 31, 2024 statements referenced in Item 21 are not present in the extracted text. 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; figures are QuickBooks-style internal statements.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Cookies By Design Compares
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
- 4
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 37.8%
- 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
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 5
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 0
- Franchisor bought back
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%
- 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.
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.
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
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.
Litigation (Item 3)
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)
Disclosed in last 7 years
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)
ⓘ 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 19 / 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
- 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
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 |
| 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
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 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 F-grade franchise with a verdict score of 19 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent COOKIES BY DESIGN, you can request corrections or provide updated information.
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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.