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FDD Talk: How Much Does a Great American Cookies Franchise Make (Average Revenues and/or Profits)?

Last updated on November 11, 2022 by Franchise Chatter Leave a Comment
in Bakery Franchise, Cookie Franchise, FDD Talk: Food Franchises, Franchise Earnings



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In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Great American Cookies franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Great American Cookies franchise, based on Item 7 of the company’s 2021 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Great American Cookies franchise, based on Items 5 and 6 of the company’s 2021 FDD
  • Section IV – Number of franchised and company-owned Great American Cookies outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
  • Section V – Presentation and analysis of Great American Cookies’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
  • 2020 average net sales by calendar month for the 15 Traditional Single-Brand Stores that were open and in continuous operation for the entire 2020 calendar year, and all 236 Traditional Single-Brand Stores that opened before January 1, 2020 (including the 15 continuously open Traditional Single-Brand Stores and the 221 Traditional Single-Brand Stores that were temporarily closed for some portion of the 2020 calendar year)
  • 2020 average net sales by calendar month for the 70 Co-Brand Stores that were open and in continuous operation for the entire 2020 calendar year, and all 97 Co-Brand Stores that opened as Co-Brand Stores before January 1, 2020 (including the 70 continuously open Co-Brand Stores and the 27 Co-Brand Stores that were temporarily closed for some portion of the 2020 calendar year)
  • 2020 average net sales by calendar month for the 35 New Co-Brand Stores that were open and in continuous operation for the entire 2020 calendar year, and all 55 Co-Brand Stores that opened as New Co-Brand Stores before January 1, 2020 (including the 35 continuously open New Co-Brand Stores and the 20 New Co-Brand Stores that were temporarily closed for some portion of the 2020 calendar year)
  • 2020 average net sales by calendar month for the 35 Add-on Co-Brand Stores that were open and in continuous operation for the entire 2020 calendar year, and all 42 Add-on Co-Brand Stores that opened as Add-on Co-Brand Stores before January 1, 2020 (including the 35 continuously open Add-on Co-Brand Stores and the 7 Add-on Co-Brand Stores that were temporarily closed for some portion of the 2020 calendar year)

Section I – Background Information

15 Things You Need to Know About the Great American Cookies Franchise

Parent Company Acquired by FAT Brands

1.  In late June 2021, FAT Brands announced that it was acquiring Global Franchise Group, parent company of Great American Cookies and other food franchises, for $442.5 million. In addition to Great American Cookies, Global Franchise Group franchises quick-service concepts Round Table Pizza, Hot Dog on a Stick, Marble Slab Creamery, and Pretzelmaker. Those brands will join FAT Brands’ growing portfolio, which includes Johnny Rockets, Fatburger, Hurricane Grill & Wings, Buffalo’s Café, Buffalo’s Express, Elevation Burger, Ponderosa Steakhouse, Bonanza Steakhouse, and Yalla Mediterranean.

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2.  Andy Wiederhorn, president and CEO of FAT Brands, said, “This acquisition is a key strategic milestone for FAT Brands. We have been very acquisitive in recent years, seeking to add strong and growing restaurant brands to our portfolio. Now that the economy is emerging from COVID-19 and restaurants are rapidly recovering, we are pleased to have reached this agreement to incorporate a powerhouse restaurant franchising group with the support of Serruya Private Equity and Lion Capital.”

3.  “The five new restaurant concepts have been very resilient coming out of the pandemic and will complement our existing brands. Furthermore, we will acquire GFG’s [Global Franchise Group] manufacturing operations, which will provide greater efficiencies and incremental revenue opportunities to our company,” said Wiederhorn.

4.  The purchase of Global Franchise Group will give FAT Brands more than 2,000 franchised and company-owned restaurants around the world that earn a combined $1.4 billion in annual systemwide sales. Eighty-seven percent of Global Franchise Group’s stores are in the U.S. Based on current projections and assumptions, including realization of expected synergies and return to pre-COVID restaurant sales, the acquisition is expected to eventually increase annual EBITDA by approximately $40 million to approximately $55-$60 million.

5.  Michael Serruya, managing director of Serruya Private Equity and chairman of Global Franchise Group, said, “This is truly a transformative deal for both FAT Brands and GFG. Andy has an exciting vision for FAT Brands and through his recent acquisitions, he has been able to create brand synergies within the portfolio while maintaining an asset-light business model. I look forward to our continued involvement with GFG through our company’s support of FAT Brands from an equity and strategic perspective.”

Set to Cross 300-Unit Mark by End of 2022


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6.  In early June 2021, Great American Cookies announced that it had signed 20 new agreements in 2020, despite the COVID-19 pandemic putting a strain on the food service industry. With its sights set on continued franchise development, Great American Cookies said it was on track to open another 31 new locations in 2021, crossing the 300-unit mark by the end of 2022.

7.  Jenn Johnston, president and chief brand officer of the quick service restaurant division of FAT Brands, parent company of Great American Cookies, said, “Despite increased competition in the gourmet cookie space, Great American Cookies remains the largest cookie concept in the US. Nearing its 50th anniversary, the brand is a powerhouse in the industry because consumers recognize and trust the name, and they equate Great American Cookies with celebratory moments in their lives.”

8.  In addition to benefiting from the brand’s strong customer recognition, franchisees have the added bonus of a 37,000-square-foot production facility in Georgia to help support the production of cookie dough that is then shipped directly to franchisees. Without the need to create dough on-site, the brand has the ability to operate out of relatively small, inexpensive footprints in high-traffic areas.

9.  Johnston added, “The Great American Cookies model has proven to be not only flexible but extremely resilient. It’s a concept that thrives in a variety of build-outs and locations across the country, and this adaptability has been the key to its continued growth and success.”

10.  It’s a model that also pairs perfectly with other concepts within the FAT Brands brand portfolio. In 2015, the company launched its first co-branded store concept with sister brand Marble Slab Creamery. Offering the perfect fusion of hand-mixed ice cream and premium cookies, including creative ice cream sandwiches, the co-branded store model has exploded to include 145 locations nationwide.

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11.  Johnston said, “Co-branding Great American Cookies and Marble Slab Creamery has become the largest growth vehicle for both brands. It is the first time in restaurant franchise history that there’s been an integrated co-brand experience where the two businesses truly complement each other, not only leveraging their audiences but also combining their menus to create something new and special.”

Company History

12.  Great American Cookies was founded in 1977 by Michael Coles and his business partner Arthur Karp in Perimeter Mall in Atlanta, Georgia. Coles and Karp started the business with a chocolate chip cookie recipe passed down to Karp from his grandmother. The first Great American Cookies was a success and franchising started the following year. Great American Cookies grew quickly over the next few years and by 1985, the company had revenue of $100 million per year and was the largest retail cookie chain in the U.S.

13.  Over the next decade, Great American Cookies continued to grow around the United States. In 1998, Coles and Karp sold Great American Cookies to Mrs. Fields Famous Brands for over $100 million. A decade later, Great American Cookies was acquired by NexCen Brands, Inc. for its quick service restaurant portfolio. While under the quick service restaurant portfolio, Great American Cookies appeared in co-branded stores with MaggieMoo’s Ice Cream & Treatery and Marble Slab Creamery.

14.  During the summer of 2021, Great American Cookies was sold to FAT Brands, owners of Fatburger and Johnny Rockets. Today, Great American Cookies has locations across the United States as well as in Guam, Bahrain, and Saudi Arabia.

Entrepreneur’s Franchise 500

15.  Great American Cookies did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

  • Detailed estimates of Great American Cookies franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Detailed information on Great American Cookies’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

  • Outlets at the Start of the Year:  355
  • Outlets at the End of the Year:  363
  • Net Change:  +8

2019

  • Outlets at the Start of the Year:  363
  • Outlets at the End of the Year:  369
  • Net Change:  +6

2020

  • Outlets at the Start of the Year:  369
  • Outlets at the End of the Year:  370
  • Net Change:  +1

Company-Owned

2018

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

2019

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

2020

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Average Monthly Net Sales Generated by the Single-Brand Stores During the Period January 1, 2020 Through December 31, 2020 (the “2020 Calendar Year”)

  • As of December 31, 2020, there were 370 Franchised Stores in operation.
  • The financial performance information presented in Part 1 of this Item 19 reflects financial performance information for 236 of the Traditional single-brand Franchised Stores (the “Part 1 Stores”) for the 2020 Calendar Year, and excludes the following Franchised Stores that were in operation as of December 31, 2020:
  • (a) the 2 Franchised Stores that first opened in the 2020 Calendar Year;
  • (b) 6 Non-Traditional Stores;
  • (c) 1 Franchised Store that was closed for the entire 2020 Calendar Year;
  • (d) 3 Franchised Stores that are seasonal locations and were closed for the entire 2020 Calendar Year; and
  • (e) 122 of the franchised co-brand Stores comprised of both a Great American Cookies franchise and a Marble Slab Creamery franchise (each a “Co-Brand Store”).

All Continuously Open Franchised Single-Brand Stores (15 Stores)

  • January (4 weeks):  $35,541.85
  • February (4 weeks):  $44,616.26
  • March (5 weeks):  $36,801.63
  • April (4 weeks):  $12,791.85
  • May (4 weeks):  $32,715.03
  • June (5 weeks):  $49,698.42
  • July (4 weeks):  $34,723.60
  • August (4 weeks):  $38,748.33
  • September (5 weeks):  $45,215.45
  • October (4 weeks):  $36,600.96
  • November (4 weeks):  $34,972.08
  • December (5 weeks):  $54,085.88
  • Full Year (Sum of Average Monthly Net Sales):  $456,511.34

All Covered Franchised Single-Brand Stores (236 Stores)

  • January (4 weeks):  $30,437.20
  • February (4 weeks):  $36,696.68
  • March (5 weeks):  $30,407.60
  • April (4 weeks):  $1,281.87
  • May (4 weeks):  $11,249.29
  • June (5 weeks):  $33,082.36
  • July (4 weeks):  $25,879.19
  • August (4 weeks):  $29,778.07
  • September (5 weeks):  $34,116.48
  • October (4 weeks):  $27,743.33
  • November (4 weeks):  $26,321.00
  • December (5 weeks):  $45,147.41
  • Full Year (Sum of Average Monthly Net Sales):  $332,140.48
  • The above Part 1 Table reflects the average monthly Net Sales information for the 2020 Calendar Year for the 236 Single-Brand Stores.
  • “Net Sales” means all revenue from the sale of all products and services and all other income of every kind related to the franchised business activities under the Franchise Agreement, whether evidenced by cash, credit, check, gift certificate, gift cards, script, or other property or services and whether collected or not.
  • Net Sales does not include (i) promotional allowances or rebates paid to franchisees for purchases of products or supplies, or (ii) any sales or other taxes that franchisees collect from customers and pay directly to the appropriate taxing authority.
  • 15 of the 236 Single-Brand Stores were open and in continuous operation for the entire 2020 Calendar Year. The first part of the above Table reflects the Net Sales information for the 2020 Calendar Year for these 15 Single-Brand Stores.
  • The second part of the above Table reflects Net Sales information for the 2020 Calendar Year for all of the 236 Single-Brad Stores (including the 15 continuously open Single-Brand Stores and the 221 Single-Brand Stores that were temporarily closed for some portion of the 2020 Calendar Year).
  • As stated above, 122 of the 370 Franchised Stores that were in operation as of December 31, 2020 were excluded from the performance information presented in the above Table because these 122 locations operated as Co-Branded Stores.
  • The data displayed in the above Part 1 Table was obtained from Net Sales reports submitted to Great American Cookies by the Single-Brand Stores.

Part 2 – Average Monthly Net Sales Generated by the Co-Brand Stores During the 2020 Calendar Year

  • Of the 262 Franchised Stores in operation as of December 31, 2020, 122 were Co-Brand Stores.
  • The data presented in this Part 2 includes historical revenue information for 97 of the Co-Brand Stores (the “Part 2 Co-Brand Stores”), and excludes data from 25 of the Co-Brand Stores for the following reasons:
  • (a) 3 of the Co-Brand Stores failed to provide Great American Cookies with the presented financial information for the 2020 Calendar Year in a timely manner for inclusion in this Item 19;
  • (b) 6 of the Co-Brand Stores first opened as Add-on Co-Brand Stores in the 2020 Calendar Year; and
  • (c) 16 of the Co-Brand Stores first opened as New Co-Brand Stores in the 2020 Calendar Year.

All Continuously Open Part 2 Franchised Co-Brand Stores (70 Stores)

  • January (4 weeks):  $31,214.49
  • February (4 weeks):  $35,564.29
  • March (5 weeks):  $37,453.46
  • April (4 weeks):  $20,881.63
  • May (4 weeks):  $36,420.30
  • June (5 weeks):  $53,298.97
  • July (4 weeks):  $39,048.07
  • August (4 weeks):  $39,804.75
  • September (5 weeks):  $44,468.16
  • October (4 weeks):  $33,297.31
  • November (4 weeks):  $29,440.68
  • December (5 weeks):  $33,395.99
  • Full Year (Sum of Average Monthly Net Sales):  $434,288.10

All Part 2 Franchised Co-Brand Stores (97 Stores)

  • January (4 weeks):  $29,415.29
  • February (4 weeks):  $33,487.34
  • March (5 weeks):  $34,529.15
  • April (4 weeks):  $15,652.38
  • May (4 weeks):  $31,513.28
  • June (5 weeks):  $49,719.43
  • July (4 weeks):  $36,608.40
  • August (4 weeks):  $37,042.66
  • September (5 weeks):  $41,456.36
  • October (4 weeks):  $31,178.67
  • November (4 weeks):  $27,557.31
  • December (5 weeks):  $31,446.40
  • Full Year (Sum of Average Monthly Net Sales):  $399,606.67
  • The above Part 2 Table reflects the average monthly Net Sales information for the 2020 Calendar Year for the Part 2 Co-Brand Stores.
  • The first part of the above Table reflects the Net Sales information for the 2020 Calendar Year for the 70 Part 2 Co-Brand Stores that were open and in continuous operation for the entire 2020 Calendar Year.
  • The second part of the above Table reflects Net Sales information for all 97 of the Part 2 Co-Brand Stores for the 2020 Calendar Year (including the 70 continuously open Part 2 Co-Brand Stores and the 27 Part 2 Co-Brand Stores that were temporarily closed for some portion of the 2020 Calendar Year).
  • The data displayed in the above Part 2 Table was obtained from Net Sales reports submitted to Great American Cookies by the Part 2 Co-Brand Stores.

Part 3 – Average Monthly Net Sales Generated by the Franchised New Co-Brand Stores During the 2020 Calendar Year

  • The data presented in the Part 3 Table below represents the average Net Sales for the 2020 Calendar Year for the 55 Part 2 Co-Brand Stores that initially commenced operating as a Co-Brand Store (each a “New Co-Brand Store”).

All Continuously Open Franchised New Co-Brand Stores (35 Stores)

  • January (4 weeks):  $33,499.76
  • February (4 weeks):  $38,743.98
  • March (5 weeks):  $40,172.27
  • April (4 weeks):  $23,992.61
  • May (4 weeks):  $40,427.04
  • June (5 weeks):  $56,755.16
  • July (4 weeks):  $42,129.87
  • August (4 weeks):  $43,355.50
  • September (5 weeks):  $48,309.86
  • October (4 weeks):  $36,485.05
  • November (4 weeks):  $32,581.89
  • December (5 weeks):  $37,645.07
  • Full Year (Sum of Average Monthly Net Sales):  $474,098.06

All Franchised New Co-Brand Stores (55 Stores)

  • January (4 weeks):  $31,739.78
  • February (4 weeks):  $36,507.30
  • March (5 weeks):  $36,578.19
  • April (4 weeks):  $16,192.91
  • May (4 weeks):  $34,016.28
  • June (5 weeks):  $52,567.76
  • July (4 weeks):  $38,903.82
  • August (4 weeks):  $39,546.09
  • September (5 weeks):  $44,351.14
  • October (4 weeks):  $33,321.42
  • November (4 weeks):  $29,999.58
  • December (5 weeks):  $34,588.49
  • Full Year (Sum of Average Monthly Net Sales):  $428,312.76
  • The above Part 3 Table reflects the average monthly Net Sales information for the 2020 Calendar Year for the New Co-Brand Stores.
  • The first part of the above Table reflects the Net Sales information for the 2020 Calendar Year for the 35 New Co-Brand Stores that were open and in continuous operation for the entire 2020 Calendar Year.
  • The second part of the above Table reflects Net Sales information for all 55 of the New Co-Brand Stores for the 2020 Calendar Year (including the 35 continuously open New Co-Brand Stores and the 20 New Co-Brand Stores that were temporarily closed for some portion of the 2020 Calendar Year).
  • The data displayed in the above Part 3 Table was obtained from Net Sales reports submitted to Great American Cookies by the New Co-Brand Stores.

Part 4 – Average Monthly Net Sales Generated by the Franchised Add-on Co-Brand Stores During the 2020 Calendar Year

  • The data below represents the average Net Sales for the 42 Part 2 Co-Brand Stores that initially commenced operating as either a Great American Cookies or Marble Slab Creamery Store, and subsequently added on the other brand to become a Co-Brand Store (each an “Add-on Co-Brand Store”).

All Continuously Open Franchised Add-on Co-Brand Stores (35 Stores)

  • January (4 weeks):  $28,929.21
  • February (4 weeks):  $32,384.59
  • March (5 weeks):  $34,734.66
  • April (4 weeks):  $17,770.65
  • May (4 weeks):  $32,413.56
  • June (5 weeks):  $49,842.78
  • July (4 weeks):  $35,966.27
  • August (4 weeks):  $36,253.99
  • September (5 weeks):  $40,626.46
  • October (4 weeks):  $30,109.57
  • November (4 weeks):  $26,299.47
  • December (5 weeks):  $29,146.90
  • Full Year (Sum of Average Monthly Net Sales):  $394,478.11

All Franchised Add-on Co-Brand Stores (42 Stores)

  • January (4 weeks):  $26,371.33
  • February (4 weeks):  $29,532.64
  • March (5 weeks):  $31,845.87
  • April (4 weeks):  $14,944.53
  • May (4 weeks):  $28,235.55
  • June (5 weeks):  $45,989.49
  • July (4 weeks):  $33,602.51
  • August (4 weeks):  $33,764.35
  • September (5 weeks):  $37,665.57
  • October (4 weeks):  $28,372.68
  • November (4 weeks):  $24,359.11
  • December (5 weeks):  $27,331.77
  • Full Year (Sum of Average Monthly Net Sales):  $362,015.40
  • The above Part 4 Table reflects the average monthly Net Sales information for the 2020 Calendar Year for the Add-on Co-Brand Stores.
  • The first part of the above Table reflects the Net Sales information for the 2020 Calendar Year for the 35 Add-on Co-Brand Stores that were open and in continuous operation for the entire 2020 Calendar Year.
  • The second part of the above Table reflects Net Sales information for all 42 of the Add-on Co-Brand Stores for the 2020 Calendar Year (including the 35 continuously open Add-on Co-Brand Stores and the 7 Add-on Co-Brand Stores that were temporarily closed for some portion of the 2020 Calendar Year).
  • The data displayed in the above Part 4 Table was obtained from Net Sales reports submitted to Great American Cookies by the Add-on Co-Brand Stores.
  • The above data was taken from financial reports submitted by franchisees. The results presented in this Item 19 were not audited or separately verified. Great American Cookies did not use any reports that were incomplete or for which the information was presented in a manner that prohibited Great American Cookies from applying the information to one of the stated categories.
  • Some stores have sold this amount. Your individual results may differ. This is no assurance you will sell as much.

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