Great American CookiesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A GREAT AMERICAN COOKIES franchise requires a total initial investment of $341K – $463K, including a $25K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $540K[2]. SBA 7(a) loans show a 4.7% charge-off rate across 89 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $341K – $463K
- 22nd pct Service Resta…
- Avg gross sales
- $540K
- 2nd pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 395
- 47th pct Service Resta…
- SBA default
- 4.7%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants 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
Bottom line
- Total investment $341K – $463K including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $540K/year (median $510K).
- Verdict A (Top Quintile) with a risk score of 51/100. SBA loan charge-off rate of 4.7% across 89 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GAC Franchising, LLC
- Parent company
- GAC Franchise Brands, LLC
- Incorporated in
- DE
- HQ
- 9720 Wilshire Boulevard Suite 500 Beverly Hills, California 90212
- Auditor
- Macias Gini & O’Connell LLP
- Audited financials
- Franchisor revenue
- $12.9M
- vs $12.9M prior year
Overview
About
Franchisees operate cookie retail locations selling freshly baked cookies and related bakery items through mall kiosks, standalone stores, or co-branded locations. Day-to-day operations include baking inventory, customer service, point-of-sale management, and inventory/supply chain coordination under strict FAT Brands operational standards.
- CEO
- Taylor Wiederhorn
- Headquarters
- CA
- Founded
- 2007
- FDD year
- 2025
- States available
- 32
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $8K | $12K |
| Equipment, build-out, other | $308K | $426K |
| Total initial investment | $341K | $463K |
Source: GREAT AMERICAN COOKIES 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$54K
10.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $341K – $463K
- Better than avg vs category
- Liquid capital req'd
- $8K – $12K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 6.0%
- Net Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $840 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $540K
- Per unit, per year
- Median gross sales
- $510K
- Item 19 type
- net_sales
- Sample size
- 256 units
- vs category median 13 · large
- Range (low → high)
- $70K→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Great American Cookies Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 395
- Opened
- 18
- Last reporting year
- Closed
- 23
- Turnover rate
- 5.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.2%
- Net unit change last year
- 3-yr CAGR
- +4.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 91
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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
- 89
- Loan volume
- $26.9M
- Median loan
- $229K
- 50th percentile
- Charge-off rate
- 4.7%
- 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)
- 95.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 48
- Defaults
- 3
Vintage analysis
Great American Cookies 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 Great American Cookies'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
- 26-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk franchise investment in declining system with active litigation, undisclosed profitability metrics, no territory protection, and regulatory compliance violations by parent company.
Audited financials (Item 21)
Yes · Macias Gini & O’Connell LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 51 / 100 rating
- 01MINORDeclining unit count (-1.2% YoY) indicates contracting franchise system with 395 units and negative momentum
- 02MINORMultiple active securities class action lawsuits against parent FAT Brands and officers raise governance and transparency concerns
- 03MEDNet income not disclosed in FDD despite $539,902 average revenue, preventing accurate ROI calculation and profitability verification
- 04MINORZero territory protection exposes franchisees to direct competition from other GAC locations and parent company cannibalization
- 05MINORState regulatory actions against affiliates for registration and financial reporting inaccuracies suggest systemic compliance issues
- 06MINOR6% royalty on declining average revenues ($539,902) may not support franchisor infrastructure as system contracts
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 | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 8 |
Items 10, 11
Training & Operations
- Classroom training
- 2 hrs
- On-the-job training
- 37 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
332 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
GREAT AMERICAN COOKIES · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a GREAT AMERICAN COOKIES franchise?
The total investment to open a GREAT AMERICAN COOKIES franchise ranges from $341K – $463K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do GREAT AMERICAN COOKIES franchise owners earn?
According to Item 19 of the GREAT AMERICAN COOKIES FDD, the average gross sales per unit is $540K. The median is $510K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is GREAT AMERICAN COOKIES's franchise failure rate?
Based on SBA 7(a) loan data, GREAT AMERICAN COOKIES has a charge-off rate of 4.7% across 89 loans, meaning 4.7% 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 GREAT AMERICAN COOKIES franchise locations are there?
As of their most recent FDD filing, GREAT AMERICAN COOKIES has 395 total units in the United States, including 389 franchised units and 0 company-owned units. 18 new units were opened in the latest reporting year.
Is GREAT AMERICAN COOKIES a good franchise to buy?
FranchiseVerdict rates GREAT AMERICAN COOKIES as a A-grade franchise with a risk score of 51 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.