Risk Score
Pending analysis
Investment Range
$816,066 - $1,442,533
Franchise Fee
$50,000
Min Cash Required
$10,000
Total US Locations
1,059
Business Summary
Crumbl® operates a cookie baking and delivery business that offers fresh, warm, and delicious cookies to the public, along with ice cream and other complementary products.
Corporate History
Crumbl Franchising, LLC was organized in Utah on February 9, 2018, and began offering and selling franchises for its cookie baking and delivery business in February 2018. The company's parent, Crumbl Enterprises LLC, was organized in May 2019 but does not operate a similar business or sell franchises. Crumbl IP, LLC, an affiliate organized in November 2019, owns and licenses the Crumbl® trademark. Another affiliate, Crumbl Foods, LLC, organized in June 2021, sells ingredients and food products to franchisees. Additionally, Crust Club Franchising, LLC, an affiliate, began franchising a business selling similar bakery and savory goods under the Crust Club® trademark in December 2022.
Financial Overview
Investment Range
$816,066 - $1,442,533
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$10,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$450,500
Equipment Costs (High)
$861,000
Working Capital
$80,800
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, raises questions about Crumbl Franchising, LLC's ability to provide services and support to its franchisees. The balance sheet shows a negative member's equity, with a deficit of $(23,447,350) in 2024 and $(13,874,596) in 2023, indicating a significant financial strain for the company itself.
Financing Details
Crumbl Franchising, LLC and its affiliates do not offer direct or indirect financing. They also do not guarantee any franchisee's notes, leases, or other obligations. Franchisees interested in financing for their Crumbl® franchise may explore options such as Small Business Administration (SBA) loans through third-party lenders.
Performance Metrics
Total US Locations
1,059
Franchised Units
1,058
Corporate Units
1
Avg Square Footage
1,800
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Crumbl Franchising, LLC has been involved in several litigation cases. In August 2023, a class action lawsuit was filed against Crumbl LLC, Crumbl IP, LLC, Crumbl Franchising, LLC, and Crumbl Enterprises, LLC, alleging fraudulent and misleading service fees; this case is pending trial in 2026. In October 2022, Crumble Coffee and Bakery in Bloomington, Indiana, filed a complaint regarding trademark use against one of Crumbl Franchising, LLC's franchisees, which resulted in a settlement agreement. In February 2022, Crumbl Franchising, LLC filed a complaint against Crumble Cookie Bar in New Jersey for trademark infringement, obtaining a default judgment that led the company to change its name to Crush Cookie Bar. Additionally, Crumbl Franchising, LLC filed suits against Crumble and Cream in Kansas in July 2022, and against Crave Cookies and Dirty Dough in Utah in May 2022, all concerning alleged trademark and trade dress infringement. The cases against Crave Cookies and Dirty Dough resulted in settlement agreements in July and October 2023, respectively. Crumbl Franchising, LLC also sent a demand letter in January 2022 to Crumbl Cakes and Bakes in Virginia, which led to most requested changes being made. The franchisor is currently evaluating if Crumb Cookie in New York is infringing its trademarks.
Bankruptcy History
Crumbl Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Crumbl Franchising, LLC franchisees must not be in default, pay a successor franchise fee, modernize their business to meet current brand standards, sign a general legal release (subject to state law), and sign the then-current franchise agreement, which may have different terms. Franchisees must provide written notice of their intent to renew between 6 and 12 months before their current agreement expires.
Training & Support Program
Franchisor Assistance
Crumbl Franchising, LLC provides pre-opening assistance to franchisees, including designating their territory, approving their site, and providing general specifications for equipment, signs, fixtures, and initial inventory, along with a list of approved suppliers. The franchisor offers preliminary design plans for the franchise business and a comprehensive initial training program. Post-opening, Crumbl Franchising, LLC provides ongoing updates to its operational manuals and offers assistance either remotely or in person, though in-person support may incur a fee. Franchisees are required to use a specific email address for business communications. The franchisor may also organize mandatory conferences or seminars, conduct periodic inspections, recommend or set pricing for products and services, and manage and assign online and delivery orders.
Initial Training Hours
130
Training Location
Franchisor headquarters in Lindon, Utah, a franchise location, or the franchisee's store, and online.
Ongoing Support
After opening, Crumbl Franchising, LLC provides ongoing support to its franchisees through various channels. This includes providing updates to the operational manuals. Franchisees can receive assistance remotely, or in-person for an additional fee. The franchisor may also require attendance at conferences or seminars to discuss improvements, new developments, and business issues. Crumbl Franchising, LLC conducts periodic inspections of franchise businesses, covering aspects like food safety, operational compliance, and customer service. The franchisor may also recommend or require maximum and/or minimum pricing for products and services, and manages the assignment of online and delivery orders from its website and app. Franchisees may be required to repair, remodel, or refurbish their premises to conform to current brand standards.
Franchise Requirements
Ideal Candidate Profile
Crumbl Franchising, LLC seeks franchisees who can actively participate in the direct operation and supervision of their business, especially full-time for the first 60 days. Beyond this initial period, the primary owner is expected to provide on-premises supervision or ensure a certified manager does. Key responsibilities for the primary owner include overseeing all accounting, reporting, bookkeeping, and decision-making, completing all required training, attending annual meetings, being directly involved in site selection, construction, remodeling, and all financial and personnel decisions, and conducting frequent inspections to maintain high standards. All equity owners must personally guarantee the franchise's obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Crumbl Franchising, LLC defines its franchise territories generally as a 1 to 2-mile radius from the approved premises. The specific size is determined by the franchisor based on factors like population density, business base, and whether the location is in a metropolitan or rural area. Territory boundaries can be set using zip codes, streets, highways, county lines, or other recognizable demarcations. The franchisor reserves the right to adjust territory boundaries at the end of the initial or successor franchise terms, or if the population within a territory reaches 100,000 residents or more.
Staffing Notes
Crumbl franchisees are responsible for all aspects of hiring, firing, compensation, benefits, and managing their employees. The franchisor provides general guidance, but compliance with labor laws is the franchisee's sole responsibility. A Crumbl location requires its primary owner to be actively involved in the business. For the first 60 days of operation, the primary owner must personally participate in direct on-premises supervision full-time. After this initial period, continuous on-premises supervision is required from either the primary owner or a designated, certified manager. The primary owner must dedicate sufficient hours or supervise the manager to ensure the Crumbl business operates at maximum capacity and efficiency, maintaining high standards of professionalism, cleanliness, and compliance with approved methods. The primary owner, or at least one trained manager, must be on-site at the Crumbl location during the majority of the store's operating hours and be available for communication with the franchisor and the store at all times. A store manager cannot manage more than one Crumbl store concurrently. All primary owners and managers must successfully complete the franchisor's initial training program before assuming management responsibilities. This training covers basic policies and procedures, equipment assembly and maintenance, customer service, daily operations, record keeping, basic accounting, and employee training. Managers must demonstrate competence in these areas to pass the training. Additionally, Crumbl franchisees, their owners, and management employees are restricted from having interests in or business relationships with competing cookie, bakery, or dessert businesses during the franchise term and for three years afterward. Employees are also required to sign a brand protection agreement.