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Crumbl’s Crown Is Slipping: A Look At Crumbl’s Franchise Cost (and a major competitor)

May 27, 2024

Storefront image of a Crumbl location, brown build with sontes at the bottom and some bushes and a large black and white Crumbl sign at the top

Crumbl Cookies has quickly become well-known for its innovative approach to desserts, delighting taste buds with its one-of-a-kind cookie creations. The brand’s commitment to changing flavors every week and stunning Instagram-worthy displays has made it incredibly popular.

But is their cookie empire all it’s cracked up to be?

While you’re researching dessert franchise options, it’s essential to have a clear understanding of the financial obligations involved.

In this article, we’ll take an in-depth look at how much it costs to open a Crumbl franchise, as well as look at a an emerging competitor primed to take the crown.

The Cost of Owning a Crumbl Cookies Franchise

Breaking Down The Numbers and Fees

  • 2023 Total Revenue of the Average Crumbl: $1,156,838
  • Total Initial Investment: $460,166 to $1,266,333
  • Franchise Fee: $50,000
  • Royalty Fees: 8% of gross sales paid weekly
  • Marketing Fund: 2% of gross sales paid weekly
  • Minimum Liquidity: $150,000

The Ups and Downs: Pros and Cons of Franchising with Crumbl Cookies

Investing in a Crumbl Cookies franchise offers a mix of opportunities and challenges that potential franchisees must weigh carefully.

Here are some key considerations:

Advantages of Franchising with Crumbl

  • Brand Recognition: Crumbl Cookies has quickly become a well-known name in the dessert industry, thanks to its rotating menu and Instagram-worthy cookies. This strong brand presence can drive customer traffic and sales.
  • Marketing Support: Franchisees benefit from corporate marketing campaigns, which can include social media promotions, influencer partnerships, and national advertising efforts.
  • Operational Systems: The company provides a tried-and-tested operational system, including recipes, supplier networks, and training programs, simplifying the day-to-day running of the business.

Challenges of Franchising with Crumbl

  • Market Oversaturation: With the rapid expansion of Crumbl Cookies, many territories around the world have become oversaturated with locations.
  • Poor Quality Control: Maintaining the high standards that customers expect from Crumbl Cookies requires constant vigilance. Unfortuantely, Crumbl has had consistent quality control issues, possibly due to making all cookies in store.
  • Hardly Any Territory Availability: As the brand grows, finding an available territory that doesn’t infringe on another franchisee’s area can be challenging. There are little to no territories available in the US.

When considering a Crumbl Cookies franchise, it’s crucial to balance these pros and cons of franchising against personal business goals and market conditions. Each aspect plays a significant role in shaping the overall franchising experience.

A Look at A Competitor: Schmackary’s Cookies Franchise Cost

 

a table graphic showing items from both the Schmackarys and Crumbl FDD's

Schmackary’s has carved out a significant niche in the cookie franchise industry, distinguishing itself with Old American Bake Shop flair and their signature Midwestern Hospitality.

They are known as the “Official Cookie of Broadway”, and for good reason. Started in 2012 by Zach Schmahl, Schmackary’s has quickly gained a loyal following, expanding to multiple locations in New York City.

Breaking Down the Numbers and Fees:

  • 2023 Total Sales of the Average Schmackary’s: $2,371,122
  • Initial Investment: $266,650-$656,500
  • Franchise Fee: $30,000
  • Royalties: 6% of weekly gross sales.
  • Worldwide Creative Fund: 2% of weekly gross sales.
  • Minimum Liquidity: $500,000
  • Units Open/In-development: 50 by 2025

 

What Makes Schmackary’s Different:

  • Bringing Back the Old American Back Shop: Schmackary’s is taking the best of the bake shops from our grandparent’s neighborhood, and pairing it with the efficiency and scalability of a modern franchise.
  • Genuine Midwestern Hospitality: Customer service that fosters community loyalty and enhances a welcoming atmosphere.
  • Welcoming In-Store Design: The warm, vintage-yet-modern store design stands in stark contrast to white, modern cookie franchises of today.
  • Legendary Media Partnerships & Collabs: Consistent partnerships with big brands (Hulu/Disney, anyone?), celebrities, Small Screen shows, and Broadway shows alike.
  • Leadership Committed to Success: Hands-on corporate support & training means your candidates are set up for success.

 

Comparing Crumbl Cookies and Schmackary’s: Which Franchise Opportunity Takes the Cake?

When looking into franchise opportunities, it’s helpful to compare Crumbl Cookies and Schmackary’s — two high-volume names in the dessert industry.

While cost or brand recognition are important considerations, having a strong market presence and the ability to grow are equally crucial in predicting the success of a business venture.

Each brand offers its own opportunities and challenges — the decision depends on which factors align more closely with your vision and objectives.

As we continue to explore other opportunities within the dessert industry, it becomes evident that conducting thorough research is essential in making a well-informed decision.

Making the Right Investment Decision for Your Franchise Journey

When you’re getting started with franchising, whether it’s with a Crumbl Cookies franchise or a Schmackary’s franchise, it’s important to choose an opportunity that aligns with your goals and financial situation.

Before diving into any franchise opportunity, it’s crucial to carefully assess your priorities, resources, and risk tolerance.

Here are three key factors to consider when making your decision:

  1. Personal Priorities: Take a look at how well the franchise fits in with your lifestyle goals and long-term aspirations.
  2. Financial Resources: Evaluate your financial readiness, including how much money you have available and what funding options are open to you.
  3. Risk Tolerance: Understand how comfortable you are with the potential risks that come with owning a business.

 

It can also be helpful to seek guidance from experts who have experience in the franchising world. Talking to franchise consultants or reaching out to current franchise owners can provide valuable insights that may not be readily available through research alone.

Remember, success in the food franchise market isn’t just about the financial investment you make.

It also depends on partnering with the right business.

 

Growing Your Wealth with Fransmart

FranSmart serves as a guiding light for eager franchisees, skilled at matching them with the ideal franchise that aligns with their distinctive needs and objectives. Offering personalized assistance, their goal is to aid in discovering opportunities that are not only financially rewarding but also pave the way for a legacy to be passed on to future generations.

A partnership with FranSmart goes beyond financial growth, focusing on making your franchising journey profitable, satisfying, and consistent with your long-term strategies.

FranSmart truly appreciates the importance of balancing work and life. They assist partners in identifying businesses that not only contribute to their entrepreneurial ambitions but also allow them the luxury of quality time with family and friends.

Partnering with FranSmart provides you the liberty to make strategic decisions and mold the future of your franchise according to your vision. In essence, FranSmart performs more than just linking entrepreneurs with franchises; they commit themselves as partners in your journey towards financial success and entrepreneurial triumph.

Your Franchise Journey Starts Here

Whether you’re just starting out or already know the right brand for you – you’ve come to the right place. Fransmart helps franchisees use the power of compounded returns to own and operate multiple franchise locations throughout your desired market to grow franchise wealth.