Section I – Estimated initial investment (franchise costs) for a Crumbl Cookies franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Crumbl Cookies franchise, based on Items 5 and 6 of the company’s 2023 FDD
Section III – Number of franchised and company-owned Crumbl Cookies outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
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Section V – Presentation and analysis of Crumbl Cookies’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest total revenue, gross profit, and net profit for the 324 franchised Crumbl Cookies locations that operated continuously through all of 2022 and timely turned in their complete financial data
Section VI – Key ratios, comparables, computations, and analyses for the Crumbl Cookies franchise opportunity (exclusive content for Platinum subscribers)
Section I – Crumbl Cookies Franchise Costs
- Crumbl Cookies franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $50,000
- Initial Tech and General Equipment Package: $75,500 to $315,000
- Initial Box and Ingredient Package: $20,000 to $30,000
- Initial Training Fees, and Travel, Lodging, Food, and Other Expenses While Training: $20,000 to $30,000
- Real Estate and Improvements: $75,000 to $640,000
- Rent for 3 Months: $16,666 to $83,333
- Professional Fees: $8,000 to $53,000
- Equipment, Furniture, Fixtures, Décor, and Supplies: $75,000 to $100,000
- POS System, Computer Hardware, and Software: $3,500 to $15,000
- Signs: $6,500 to $32,000
- Miscellaneous Opening Costs: $2,500 to $30,000
- Opening Inventory: $5,000 to $16,000
- Additional Funds for 3 Months: $10,000
- Total Estimated Crumbl Cookies Franchise Costs: $367,666 to $1,404,333
Section II – Crumbl Cookies’ Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Crumbl Cookies’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $50,000
- Royalty: 8% of gross sales
- Marketing Fee: 2% of gross sales
- Advertising Cooperative: 1% to 2% of gross sales payable to the co-op, if established by Crumbl
Section III – Number of Franchised and Company-Owned Crumbl Cookies Outlets
Franchised
2020
- Outlets at the Start of the Year: 54
- Outlets at the End of the Year: 141
- Net Change: +87
2021
- Outlets at the Start of the Year: 141
- Outlets at the End of the Year: 325
- Net Change: +184
2022
- Outlets at the Start of the Year: 325
- Outlets at the End of the Year: 688
- Net Change: +363
Company-Owned
2020
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- Outlets at the End of the Year: 1
- Net Change: 0
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2022
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
Section IV – News Updates on the Crumbl Cookies Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Crumbl Cookies Franchise (Item 19, 2023 FDD)
Average, High, Median, and Low Total Revenue, Gross Profit, and Net Profit for Franchised Locations That Operated Continuously Through 2022
- The representation made below is an historic financial performance representation of a subset of Crumbl locations that operated continuously through all of 2022, subject to certain assumptions specified below.
- The total number of franchised outlets that existed at the beginning of 2022 and operated continuously through 2022 (and timely turned in their complete financial data) was 324, which equates to approximately 47.16% of the total traditional franchised locations that were operating at the end of 2022.
- The following data represents the average, high, median, and low 2022 calendar year financial data for such 324 Crumbl locations. The chart shows the Total Revenue, Gross Profit, Gross Margin, and Net Profit (defined below) for the 2022 calendar year from such locations.
- These locations operated in several states across the United States. These locations serve the same type of goods that you will be serving. These locations are each within territories of approximately 40,000 to 125,000 people. Your location will likely face different competition, costs, customer preferences, population numbers, and other factors.
Total Revenue
- Average: $1,838,908.63 (100.0%)
- High Store: $4,022,090.82
- Median Store: $1,796,339.22
- Low Store: $589,291.38
Total Gross Profit
- Average: $775,510.65 (42.2%)
- High Store: $1,981,642.03
- Median Store: $756,634.71
- Low Store: $164,310.15
Total Net Profit
- Average: $298,319.08 (16.2%)
- High Store: $1,117,012.31
- Median Store: $256,029.93
- Low Store: $(160,202.58)
- Out of the pool of such 324 Crumbl locations that operated continuously for the 2022 calendar year and are included in the data above, (a) 150 locations (approx. 46.3%) met or surpassed the average Total Revenue, (b) 153 locations (approx. 47.2%) met or surpassed the average Gross Profit, and (c) 136 locations (approx. 42.0%) met or surpassed the average Net Profit.
- The data for the Gross Profit and Net Profit for the High Store, Median Store, and Low Store above are based on the Total Revenue for each corresponding column. If there are an even number of stores in the data set, the Median Store data is calculated from the average of the two median values of Total Revenue, Gross Profit, and Net Profit from both stores.
- The Net Profit may include operating costs that may vary for each location. Such costs could include officer wages, guaranteed payments, corporate benefits and perks, and other indirect costs that owners of each location may choose to incur.
- Note that the total franchised locations that were operating at the end of 2022 was 687, but 363 of these locations were not included in the data set above because these were new locations that were not opened and operating for the entire year in 2022.
- Note that 10 locations of the 324 Crumbl locations that operated continuously for the 2022 calendar year did not timely turn in certain cost information and therefore, the Gross Profit and Net Profit for such locations were partially estimated based on historical data from prior years.
- Crumbl has one non-traditional franchise location that operates under a different business model and is not included in the data set above.
- “Average Month” or “Average Monthly” refers to the respective average monthly Total Revenue, Gross Profit, Gross Margin, Net Profit, and Net Margin of all 324 Crumbl locations that operated continuously for the 2022 calendar year.
- “Gross Profit” means Gross Sales minus cost of goods sold, including food goods, labor, and payroll taxes.
- “Net Profit” means Gross Profit minus all ordinary and recurring operating expenses, interest, income taxes, depreciation, and amortization.
- “Total Revenue” means total revenue derived from the sale of goods or services less sales tax, discounts, allowances, and returns.
- The financial performance representation figures do not reflect the costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.
Section VI – Crumbl Cookies Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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