FranchiseVerdict
Crumbl Cookies logo
FV-00676·STRONGExcellent91FDD 2022

Crumbl Cookies

Food & Beverage - BakeryFranchising since 2018Website
Investment
$348K – $692K
60th pct Bakery
Avg revenue
$1.7M
53rd pct Bakery
Royalty
8.0%
92nd pct Bakery
Units
327
89th pct Bakery
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $348K – $692K including a $50K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $1.7M/year (median $1.6M). Estimated payback in 1.5 years.
  • Rated STRONG with a risk score of 43/100. SBA loan default rate of 0.0% across 581 loans (below the industry average).
  • System growing at 50370% CAGR over 3 years with 327 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
CRUMBL FRANCHISING, LLC
Parent company
Crumbl Enterprises LLC
Incorporated in
Utah
HQ
815 W. University Parkway, Orem, Utah 84058
Auditor
Squire & Company, P.C.
Audited financials
Franchisor revenue
$13.4M
vs $46.6M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Crumbl Cookies unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,687,731
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $348K–$692K
Working capital
$
FDD reports $10K–$10K

Unlevered ROIC · per unit

25%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$135K
EBITDA margin
8.0%
Total invested
$530K
Payback
47 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Crumbl Cookies units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$338K

on $1.7M purchase

Total debt

$1.4M

SBA $0.8M + senior + seller note

Overview

About

Franchisees operate premium cookie retail locations, managing daily production of rotating specialty flavors, point-of-sale operations, staffing, and inventory. Day-to-day responsibilities include food preparation, customer service, marketing execution, and P&L management across a high-traffic, Instagram-driven brand targeting younger demographics.

CEO
Jason McGowan
Founded
2018
FDD year
2022
States available
43

Item 7 · what it costs

The Vitals

Total investment
$348K – $692K
All-in to open one unit
Liquid capital
$10K – $10K
Cash you must have on hand
Franchise fee
$50K
Royalty
8.0%
percentage of gross sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical
Payback period
1.5 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.7M
Per unit, per year
Median gross sales
$1.6M
Item 19 type
Actual Performance
Sample size
115 units
vs category median 23 · large
Range (low → high)
$734K$3.6M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank53th
vs Food & Beverage - Bakery peers
Investment cost rank60th
Lower investment ranks lower (better)
Royalty rate rank92th
Lower royalty = lower percentile (better)
Unit count rank89th
vs Food & Beverage - Bakery peers
Risk score rank8th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
327
Opened
185
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+131.2%
Net unit change last year
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2020
326+185
Franchised units
2021
141
Franchised units
2022
54
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 25 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Available · 25 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
581
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

43
Risk · 0-100
STRONG43 / 100

Crumbl presents a high-growth but structurally risky opportunity marked by explosive expansion without territorial protection, unverified income claims, and concerning unit velocity that may indicate market saturation ahead.

Score breakdown · what drove the 43 / 100 rating

  1. 01MINORExplosive unit growth (131.2% YoY) suggests potential market saturation and cannibalization risk — unsustainable expansion pace raises sustainability concerns
  2. 02MINORZero territorial protection despite rapid multi-unit development creates direct competition between franchisees and company-owned locations
  3. 03MINORHigh initial investment ($347k-$691k) paired with 8% royalty requires $135k+ annual sales just to break even on fees, limiting margin flexibility
  4. 04MINORItem 19 Financial Performance Representations absent — unable to independently verify claimed $357k average net income across franchise system
  5. 05MINORHypergrowth trajectory (131% YoY) indicates classic bubble dynamics; historical data needed to assess whether growth is sustainable or driven by unsustainable unit expansion

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
3 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Utah

Item 11

Training & Operations

Classroom training
16 hrs
On-the-job training
55 hrs
POS system
Stripe POS
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

35 numbers

Locked
(801) 369-••••
The franchisor, Crumbl Franchising, LLC, is located at
UT
(801) 530-••••
UT
(916) 445-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Crumbl Cookies · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above