Dirty Dough Cookies Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$153,600 - $510,000
Franchise Fee
$20,000
Min Cash Required
$10,000
Total US Locations
69
Business Summary
Dirty Dough Cookies operates a business that sells cookies, "dirty drinks", and other dessert items. Franchisees have the option to add a mobile trailer unit to their established brick and mortar business.
Corporate History
Dirty Dough Cookies was initially organized as Dirty Dough Franchising LLC in Utah on September 10, 2021, and began offering franchises in October 2021. The parent company, Dirty Dough LLC, was formed in March 2022. An affiliate, Craveworthy LLC, formed in December 2022, holds an interest in Dirty Dough Cookies and its parent, and has been involved in selling multiple restaurant brand franchises since 2021. Another affiliate, Dirty Dough Corporate Franchising LLC, previously sold Dirty Dough Cookies franchises under a different franchise model from March 2022 to January 2024.
Financial Overview
Investment Range
$153,600 - $510,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
4%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$98,000
Working Capital
$5,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Dirty Dough Cookies' financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The company has a significant accumulated deficit, with members' equity being negative $2,287,560 in 2023 and negative $2,244,319 in 2022.
Financing Details
Dirty Dough Cookies does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other financial obligations. Franchisees must secure their own funding.
Performance Metrics
Total US Locations
69
Franchised Units
59
Corporate Units
10
Avg Square Footage
1,000
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Dirty Dough Cookies is currently involved in one lawsuit filed on January 25, 2024, by a former franchisee, Making Dough N. Ogden LLC. The former franchisee alleges fraudulent inducement, negligent misrepresentation, and unjust enrichment, and is seeking rescission and damages of $465,000. The case is in the discovery phase, and no action or ruling has been made as of the FDD's issuance date.
Bankruptcy History
Dirty Dough Cookies has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew with Dirty Dough Cookies, franchisees must not be in default of their agreement, pay a successor franchise fee, modernize their business to meet the franchisor's then-current standards, and sign the current successor franchise agreement. This new agreement may contain materially different terms. Franchisees must also sign a general release, subject to state law. Notice of intent to renew must be provided between 6 and 12 months prior to the current agreement's expiration.
Training & Support Program
Franchisor Assistance
Dirty Dough Cookies provides various forms of support to its franchisees. Before opening, Dirty Dough Cookies helps with site designation and approval based on specific criteria, provides general guidance for site selection, and offers names of approved suppliers. Franchisees receive preliminary design and layout plans for their business and are granted access to confidential operations manuals. Dirty Dough Cookies also provides grand opening assistance with one to three representatives, which may be virtual. After opening, Dirty Dough Cookies offers ongoing updates to manuals, remote or in-person assistance (with fees for in-person support), and maintains a brand website that includes franchisee business information. Dirty Dough Cookies may also hold conferences and seminars, conduct periodic inspections of the business (in-person or remotely), suggest retail prices, handle replacements for defective products purchased directly from them, and may require franchisees to remodel or upgrade their premises and equipment. Dirty Dough Cookies also develops and refines products and services and provides franchisees with a designated email address for business communications.
Initial Training Hours
55
Training Location
Cincinnati, Ohio
Ongoing Support
Dirty Dough Cookies provides ongoing support through regular updates to its operations manuals, and offers remote or in-person assistance upon reasonable request (with additional fees for in-person support). Dirty Dough Cookies maintains a brand website that includes franchisee location information. It may also host conferences and seminars for franchisees. Periodic inspections of the franchise business are conducted, which can be in-person or via remote access. Dirty Dough Cookies offers continuing assistance as deemed advisable, may suggest retail pricing, and handles replacements for defective products purchased directly from them under a limited warranty. Franchisees may be required to update or remodel their premises and upgrade equipment every five years or more frequently for certain reasons. Dirty Dough Cookies also works to refine and develop products and services, and provides a designated email address for business communications. Additionally, Dirty Dough Cookies requires replacement training for new operating principals or managers, initial refresher training after six months of operation, and annual manager training, all of which incur a per-person daily fee.
Franchise Requirements
Ideal Candidate Profile
Dirty Dough Cookies seeks franchisees whose operating principal will work full-time and directly participate in supervising the franchise business. Additionally, franchisees must employ a trained manager for on-site, full-time management. The operating principal is expected to oversee all financial aspects, complete all required training, attend meetings, be involved in site selection and remodeling, make personnel decisions, conduct frequent inspections, and work sufficient hours to ensure the business operates efficiently. Any individual owning 20% or more of the franchise business must personally guarantee the agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Dirty Dough Cookies territories are generally defined by a radius of 1.5 driving miles from the franchisee's location, or may be limited to the physical boundaries of a mall if located within such a facility. Territories typically have a population base of approximately 50,000 people. For densely populated areas, territory restrictions are negotiated on a case-by-case basis, and the radius may be smaller depending on demographics and geographical boundaries.
Staffing Notes
Dirty Dough Cookies mandates that the operating principal works full-time and directly supervises the franchise business. Additionally, franchisees must employ a trained manager for on-site, full-time management. The franchisor does not assist with hiring, firing, or other employment-related decisions for staff, considering this the franchisee's sole responsibility to comply with all applicable labor laws. While a sample employee guide may be provided, franchisees are responsible for adapting it and creating their own employee handbook with legal counsel. All management employees must sign a brand protection agreement that includes non-competition restrictions.