Crumbl
Crumbl is a cookie baking and delivery franchise based in Utah, known for its customizable cookies and rapid delivery service. Operating since 2019, Crumbl operates in the quick-service restaurant sector.
Crumbl franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Crumbl® franchise ranges from $816,066 to $1,442,533. This includes the payment of $78,000 to $86,000 to the franchisor or its affiliates before opening [p.2].
What is the initial franchise fee?
The initial franchise fee is $50,000 and it is non-refundable except in cases where both parties agree to terminate the agreement before the franchise is open and operating, at the franchisor's discretion. [p.14, p.111]
What are the ongoing royalty and advertising fees?
The franchisee is required to pay a non-refundable ongoing weekly royalty as specified in Exhibit 'A-3'. Additionally, franchisees must contribute a percentage of their sales towards advertising and marketing fees [p.206]. These advertising and marketing fees are recorded as deferred revenue until the related activities are performed [p.206].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the length of the initial franchise agreement or the conditions for its renewal.
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you cannot freely sell or transfer your franchise. The franchisor can refuse such transfers except for good cause [p.85]. Good cause includes but is not limited to unspecified reasons, and the franchisor also has a right of first refusal to purchase the franchise in such cases [p.85].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands that the company controls [p.46, p.78]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes an online self-guided course followed by an in-person training session at their headquarters or another designated location. This in-person training lasts around 10 to 14 days, and a third part of the training is conducted on-site during the grand opening. The total length of training generally ranges from 18 to 29 days. Additionally, ongoing support is provided, though specific details are not detailed in these excerpts. [p.43]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, the company had a total of 1,059 franchised outlets in operation. During 2024, 20 franchises were closed, and 73 franchises were transferred. Additionally, there were 235 franchises that were not open and operating as of the same date [p.204].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the ones specified in the FDD. However, if purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance upon request [p.65]. This isn't specified in the excerpts for new outlets or general earnings information.
What am I restricted to selling, and where must I buy supplies?
You must use, provide, and sell only those goods and services that meet the franchisor's specifications and are purchased from approved suppliers as per the manuals. You are required to buy opening equipment packages, including ovens or mixers, and an opening box and ingredient package from the franchisor or its affiliate [p.125]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers it designates, which might be more expensive than similar items available elsewhere [p.4]