Crumbl Cookies Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $25,000
- The initial franchise fee and all other fees payable to Crumbl are non-refundable and Crumbl does not finance any portion of such fees.
2. Initial Training Fees, and Travel, Lodging, Food, and Other Expenses While Training: $4,500 to $10,000
- You are responsible to pay all travel, lodging, food, and other expenses for your attendees during training, directly to the supplier (hotels, airlines, restaurants, rental car companies, etc.). Crumbl estimates that you will have 4 people attend training.
- These costs will vary widely as a function of the distance traveled and the choice of accommodations, meals, and transportation.
3. Real Estate and Improvements: $75,000 to $250,000
- You must purchase or lease a suitable location for your franchise business. Crumbl must approve of your location.
- Costs of commercial property or leases and improvements vary widely based on location, terms of the lease, the total area of your space, as well as construction and material costs.
- Your landlord may provide you with a tenant improvement allowance as part of your lease, which has not been included as part of these estimates.
- Crumbl has not included an amount for the purchase of real property because such cost varies widely per location and Crumbl recommends that you lease your location instead of purchasing.
- You should review these costs with a local contractor, commercial real estate agent, and other professionals.
4. Rent for 3 Months: $16,666 to $133,333
- Your space will vary depending on your needs, but Crumbl estimates you will need between 1,200 and 1,400 square feet, and Crumbl estimates your lease to be between $50,000 to $400,000 per annum, depending on your location. This amount includes an estimate for the cost to lease your commercial property for 3 months until your business is operational.
- Crumbl’s estimates also assume you pay a security deposit equal to 1 month’s rent, and that you begin paying rent when (or shortly before) you open for business. For this to occur, you would need to negotiate a “free rent” period for the time it takes to build out your business. You may be able to negotiate additional free rent or reduced rent periods after opening as well.
- Crumbl expects that you will rent your location. If you choose to purchase real estate instead of renting, your costs will be significantly different. Due to the vastly different prices in real estate throughout the country, Crumbl has not included an estimate for the cost to purchase and/or build a location in the estimates above.
5. Professional Fees: $8,000 to $15,000
- You must employ and pay a licensed architect pre-approved by Crumbl to accomplish and prepare and develop a preliminary set of plans, specifications, and related construction documents, and to prepare a full stamped set of floor plans, plans, and specifications to include mechanical, plumbing, and electrical engineering as necessary to satisfy city, state, and local building codes for your Crumbl franchise business. You must hire a local engineer or builder to construct or improve your premises according to such plans.
- This estimate may vary widely from the professional costs in your area.
- There is no allowance included in this estimate for site planning, landscape planning, use permitting, gaining of variances or resolution of related planning and zoning conflicts, accomplishment of energy consumption calculations, accomplishment of building elevations, civil or structural engineering.
- Additionally, this fee estimate does not include an allowance for bid or contract administration or client directed revisions which will need to be negotiated on a case-by-case basis prior to commencement of the requested work.
- You may also elect to hire other professionals, including attorneys and accountants, to assist you in the establishment of your Crumbl franchise business.
6. Equipment, Furniture, Fixtures, Décor, and Supplies: $75,000 to $100,000
- Included in this estimate are the cost of kitchen equipment, utility sinks, counters and shelving, refrigeration, utility shelving, millwork, chairs, tables, interior design, ovens, warmers, lighting, interior signage, equipment consolidation fees, management fees, and optional equipment installation fees. This estimate also includes office supplies, gift cards, and small wares.
- All purchase agreements or leases must be negotiated with suppliers. For any items purchased from Crumbl, it requires immediate payment.
7. POS System, Computer Hardware, and Software: $3,500 to $8,000
- You will be required to initially purchase and use Crumbl’s designated POS system, software, and the following computer hardware: an iMac or Apple desktop computer, iPad, and Apple TVs.
- You must also use Quickbooks Online software and follow Crumbl’s accounting procedures and line items as provided in Crumbl’s policies and procedures manual. Crumbl will furnish you with a chart of accounts and line items that you and your accountant must follow.
- Crumbl will have independent access to any information or reports on this computer and/or software system. Crumbl requires ongoing access to this information.
8. Signs: $6,500 to $15,000
- At least 1 exterior sign displaying the trademark and 1 interior sign are required. These signs may be made locally. All signs must conform to Crumbl’s specifications.
- All purchase agreements or leases must be negotiated with your suppliers. You must use the location’s monument sign if available.
9. Miscellaneous Opening Costs: $1,500 to $2,500
- These miscellaneous costs include legal fees, utility costs, business entity organization expenses, employee training, deposits, insurance, and licenses. The cost of insurance may vary depending on the insurer, the location of your franchise business, and your claims history.
- Crumbl strongly recommends that you hire a lawyer, accountant, and other professionals to advise you on this franchise offering. Rates for professionals can vary significantly based on locale, area of expertise, and experience.
10. Opening Inventory: $4,000 to $6,000
- Opening inventory items include product inventory, food, beverages, soft goods, boxes, cups, uniforms, baking goods and ingredients, flour, sugar, premier chocolate chips, linens, stickers, business cards, coupon cards, gift cards, paper products, uniforms, other food items, and other items required to operate a Crumbl franchise business.
- The range in cost depends upon the size of your franchise business, as well as estimated initial business volume. Opening inventory items do not include napkins, utensils, or similar items intended to aid in the consumption of food at your location.
11. Additional Funds for 3 Months: $10,000
- This estimates your operating expenses during your first 3 months of operations, not including cash flows.
- You must maintain adequate working capital reserves sufficient to keep your business in operation for at least 3 months, not including cash flows. This amount cannot be less than $10,000. It is a default of the Franchise Agreement if your operating account drops below this amount at any time even after royalties and other required fees to Crumbl have been paid.
- Crumbl has relied upon the experience of its principals and franchisees to compile these estimates. Additionally, if you elect to finance your investment, you need to account for the additional costs of repaying that financing.
- Crumbl has relied upon the experience of its principals to compile these estimates.
12. Total Estimated Initial Investment: $229,666 to $574,833
- These figures are estimates for the development of 1 franchise unit and Crumbl cannot guarantee that you will not have additional expenses starting your franchise business.