Do you love eating cookies? If yes, you’ll adore Crumbl Cookies. This young dessert brand has made a name for itself with a unique approach. In just six years, it’s become one of the fastest-growing franchises in the country, making it a top franchise opportunity.
Crumbl Cookies is attracting more customers with its unique features. These include a weekly menu that keeps things fresh, open kitchens for a fun experience, and the “famous pink box” for social media sharing.
Starting a Crumbl Cookie franchise is smooth thanks to their support. They offer training, help with launching, and ongoing business assistance. If you’re looking for a rewarding and profitable franchise, Crumbl Cookies is worth considering. We’ll explore the details of owning a Crumbl Cookie franchise to help you decide if it’s right for you.
The Cost of Owning a Crumbl Cookie Franchise
Starting a Crumbl Cookie franchise isn’t cheap, but it’s more affordable than many others. The average store earnings are high compared to the start-up costs. You’ll need to invest between $228,000 and $600,000 to open a location. Plus, there’s a $25,000 franchise fee to pay upfront.
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Here’s what you can expect:
Initial Cost
- Liquid Cash Requirements: $150,000
- Initial Investment: $228,000 to $600,000
- Initial Franchise Fee: $25,000
Crumbl Cookie has low financial requirements for franchisees. They only need a minimum of $150,000 in liquid assets. This is much lower than many other franchises, which often require over $500,000.
After the initial investment and fee, there are ongoing costs. The national brand charges a royalty fee of 8% of total sales. This helps cover the costs of services and assistance for franchisees. Additionally, there’s a 2% marketing fee for advertising and public relations.
About Crumbl Cookie Franchise
Jason McGowan and Sawyer Hemsley started Crumbl in 2017. They had no baking experience. They used A/B testing to perfect their cookie recipe.
McGowan, from the IT world, thought A/B testing was key. They introduced new flavors, changing their menu.
Every week, Crumbl offers new cookie flavors. They pick based on customer preferences and ingredient availability. They now have over 170 flavors, including morning and waffle cookies.
Since starting, Crumbl has grown to over 400 locations. In 2021, it was the fourth fastest-growing franchise. Locations make $1.7 million in sales annually, with over $350,000 in net profit.
How to Start Crumbl Cookies Franchise?
To start a Crumbl Cookies franchise, follow these steps. Crumbl Cookie lists a 7-step process on their website. Here are the steps:
Introduction to Crumbl
First, learn about Crumbl Cookie and its brand. It’s important to understand the product and business model. Crumbl looks for franchisees who are committed to the brand and can run a successful location.
Plan to visit a Crumbl Cookie location. Talk to current franchise owners for insights. This will help you understand what running a Crumbl Cookie location is like.
Make sure you meet the requirements for opening a Crumbl Cookie. You need to meet the minimum liquidity requirement and live in an area where franchises can be opened. Crumbl Cookie wants dedicated owners, not those running it as a side gig.
Think about a potential location for your Crumbl Cookie. This is crucial. Check the website for available markets. Look at the franchise disclosure document (FDD) as part of your research.
Interview
After submitting an inquiry, you’ll go through an interview. The franchise wants to get to know you, understand your interest, and see if you’re a good fit.
Proposing a Location
If the interview goes well, you’ll propose a location for your Crumbl Cookie franchise. Think carefully about where you want to open. Do market research to see if people want cookies in that area.
Look at the population and if people can afford your cookies. Check if other Crumbl Cookies are nearby. Also, see if local bakeries might be a challenge.
Consider the cost too. You might need a commercial real estate loan to pay for the location.
Crumbl Cookie can guide you in picking a location. They know what works from their experience with other franchises.
Completing the Purchase
After choosing a location, you’ll buy the franchise. This includes a $25,000 fee and initial costs. You can look into financing options to cover these costs.
Onboarding
Now, you’ll learn how to run your Crumbl Cookie franchise. You’ll get training on making products and running the store. This prepares you for opening day.
Construction
Next, you’ll build your storefront. You’ll need permits and contractors. Crumbl Cookie will help with this.
Grand Opening
The final step is your grand opening! Crumbl Cookie will help plan for a big launch. This will draw in customers and start your business off strong.
What Kind of Profits Can Be Expected from Owning a Crumbl Cookies Franchise?
Crumbl Cookie franchises make about $1.7 million in sales each year. They also make over $350,000 in net profit. But, profits vary based on location, size, and management skills.
Some owners make more than others. But, Crumbl Cookie franchises have high average profits. This is despite their high startup costs.
How Profitable Is It to Own a Franchise of Crumbl Cookies?
Let’s do some math. The initial investment is between $228,000 and $600,000. The average yearly profits are $350,000. This means you can break even in 0.76 to 2.0 years.
But, we’re not counting the resale value of the Crumbl Cookies franchise. This could make breaking even even faster.
Before you start a Crumbl Cookie franchise, you need a business plan. It should include some basic math. This will help you figure out your profit margin and total revenue.
Benefits of Owning a Crumbl Cookie Franchise?
The initial investment for a Crumbl Cookie business is big. But, it might be worth it for the right person. Here are some benefits to consider:
Fast Growing Business
Crumbl has grown fast since 2017. It’s become a market leader with its unique and high-quality goods. The franchise has seen explosive growth, with many markets still available for sale.
Weekly Rotating Menu
Crumbl’s menu changes every week. This breaks the trend of boring flavors found in many fast-food places. It keeps customers excited and coming back for new flavors each week.
Low franchise fee and low startup costs
Crumbl Cookie has a low franchise fee of $25,000. The initial investment is also low, and you only need $150,000 in liquidity. This makes it accessible to many people.
Niche franchise opportunity
Crumbl Cookie is a unique franchise concept. It faces less competition than other fast-food franchises. This can be a big advantage, especially in markets with high demand.
Challenges Associated With Crumbl Cookie Franchise
Before applying, it’s important to know the challenges of owning a Crumbl shop. Here are some difficulties you might face:
Menu that Changes Each Week
Changing the menu weekly can be a challenge. You need to manage your inventory and ensure you have the right ingredients. But, Crumbl Cookie franchises have successfully adapted to this.
You also need to focus on marketing and social media. Keeping customers updated on the menu is key. This is what makes the changing menu so powerful.
Quality Control and Assurance
As the owner of Crumbl, you might face challenges in keeping product quality high. Frequent menu changes can impact this. You must ensure your employees can handle making many different types of cookies.
Lack of Long-Term Track Record
Crumbl Cookie has grown fast since 2017. But, it lacks the long-term success of other franchises. The excitement around Crumbl Cookie might fade over time. Opening a Crumbl Cookie is different from starting a well-known brand like McDonald’s.
Overview
Starting a Crumbl Cookie franchise is challenging. It requires time, dedication, and thorough research. But, it could be a great chance for a small business owner.
Crumbl Cookie franchises have seen huge success. They offer strong corporate support and are ready for growth. This makes them an attractive option.
Research is key when starting a business. Investigating Crumbl Cookie and other franchises can lower failure risks. Use this article as a starting point to explore your options. Check out our other posts on franchise opportunities too!
Author by Vitas Changsao
