Crumbl franchise
The franchisee operates a retail store that bakes and sells cookies, ice cream and related products for in-store pickup, catering and delivery, using the franchisor's recipes, rotating menu, proprietary ingredients and required suppliers.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — Crumbl Franchising, LLC
- Document
- FDD 2026, issued 2026-04-06, amended 2026-05-13
- Item
- Item 15
- Page
- PDF p. 58
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640903
The primary owner must personally participate in the direct operation and supervision of the business full time for at least the first 60 days of operation. After that, on-premises supervision may be provided by either the primary owner or a designated manager certified by the franchisor, who must be on site for the majority of operating hours and may not manage more than one Crumbl store. The manager need not hold equity. The primary owner still has to handle accounting and decision-making, complete all required training, attend franchisee meetings, take part in site selection and personnel decisions, and stay in contact with the store at least weekly.
What stands out
- Total initial investment of $848,566 to $1,472,533 for a single leased location, including a flat $50,000 initial franchise fee; $81,000 to $89,000 of the total is payable to the franchisor or its affiliates.
- Ongoing fees: 8% royalty and 2% marketing fund on gross sales, $650 per month technology fee, 2.4% to 4% per transaction processing fee, local advertising of 0% to 2% (currently set at 0%), and 1% to 2% to a cooperative if one is formed.
- Item 19 gives gross sales only: average $1,139,162 and median $1,093,071 for 776 franchised locations open all of 2025 that reported on time; range $365,129 to $3,421,762, with about 45% at or above the average. No cost or profit data is disclosed.
7 more observations
- The Item 19 sample omits 272 continuously-operating outlets that did not report on time, 53 partial-year outlets and 8 that closed during 2025.
- Franchised outlets rose from 689 to 1,101 over 2023 to 2025, but openings dropped from 288 to 100 to 52 a year while transfers rose from 44 to 62 to 82.
- The system is now entirely franchised; the last company-owned outlet was sold to a franchisee in 2025.
- 207 franchise agreements were signed but unopened as of December 31, 2025, and the cover pages flag this as a state-required risk factor.
- No exclusive territory; territories are generally 1 to 2 miles and can be redrawn at renewal or when territory population reaches 100,000. A $100,000 minimum in annual gross sales applies.
- 10-year term, renewable for a further 10 years on payment of a $2,500 successor fee and modernization; all equity owners must give personal guarantees; 3-year post-term non-compete within 25 miles; arbitration in Utah.
- The cover pages state that the franchisor's financial condition, per its Item 21 financial statements, calls into question its ability to provide services and support.
Things to verify
- Read the Item 21 financial statements alongside the cover page risk factor about the franchisor's financial condition, and ask what has changed since the statement date.
- Ask why 272 of the 1,048 continuously-operating franchised outlets did not submit complete financial reports on time, and whether their sales differ from the 776 that did.
- Item 19 stops at gross sales. Build a cost model from franchisee interviews covering food and paper, labor, rent, the 8% royalty, the 2% marketing fund, the $650 technology fee and the 2.4% to 4% transaction processing fee.
6 more questions
- Openings fell from 288 in 2023 to 52 in 2025 while 207 signed agreements remain unopened. Ask how long the pipeline has been waiting and what is holding openings back.
- Transfers rose every year, reaching 82 in 2025 against 1,101 outlets. Ask the franchisor and franchisees why owners are selling and at what prices.
- Territories of 1 to 2 miles with no exclusivity and a franchisor right to redraw boundaries at renewal deserve a close look at the specific territory being offered.
- Confirm how much of the required purchasing runs through the franchisor's affiliate Crumbl Foods, LLC, and how supplier rebates and 20% to 40% mark-ups affect food cost.
- Item 20 notes confidentiality clauses that stop some current and former franchisees from speaking freely; make sure the franchisees contacted are free to talk.
- Verify what liquidity and net worth the franchisor expects from applicants, since the reviewed document states neither.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Crumbl franchisee runs a retail cookie bakery, typically 1,600 to 2,000 square feet on a leased site, selling cookies, ice cream and related items for pickup, catering and delivery on a rotating menu. Item 7 puts the total investment for one location at $848,566 to $1,472,533, which includes a flat $50,000 initial franchise fee. Of that total, $81,000 to $89,000 goes to the franchisor or its affiliates before opening: the franchise fee, an $8,000 training fee, a $12,000 to $15,000 tech equipment package and an $11,000 to $16,000 box and ingredient package. The largest line items are real estate and improvements at $350,000 to $700,000 and equipment and fixtures at $268,000 to $306,000; no allowance is made for buying property. Ongoing charges are an 8% royalty and a 2% marketing fund contribution on gross sales, a $650 monthly technology fee, a 2.4% to 4% transaction processing fee, a local advertising requirement set anywhere from 0% to 2% (currently 0%), and a possible 1% to 2% cooperative contribution. Minimum liquidity and net worth requirements are not disclosed in the reviewed source.
Item 19 reports gross sales only. For the 776 franchised locations that operated all of calendar 2025 and filed complete reports on time, average gross sales were $1,139,162 and the median $1,093,071, with a high of $3,421,762 and a low of $365,129. Only about 45% of those locations reached the average. The reporting group is roughly 74% of the 1,048 franchised outlets that ran continuously through 2025 and about 70% of the 1,101 open at year end; 272 non-reporting outlets, 53 partial-year outlets and 8 that closed during 2025 are excluded. No costs, margins or profit figures appear anywhere in Item 19, so nothing in the document supports an earnings estimate.
Item 20 shows a system that grew fast and then slowed. Franchised outlets went from 689 at the start of 2023 to 1,101 at the end of 2025, a net gain of 412, but annual openings fell from 288 to 100 to 52. Closures stayed modest — 6, 12 and 8 terminations across the three years, plus one non-renewal in 2025 and no other cessations — while transfers between franchisees climbed from 44 to 62 to 82. The last company-owned store was sold to a franchisee in 2025, leaving the system entirely franchised. As of December 31, 2025, 207 signed franchise agreements had no outlet open, against 98 openings projected for the next year.
On risk, Item 3 discloses one pending matter, a customer class action in California over how service fees were displayed at ordering, with trial scheduled for later in 2026; Item 4 discloses no bankruptcies. The franchise grants no exclusive territory, territories run about 1 to 2 miles, and a $100,000 minimum in annual gross sales must be met. Every equity owner personally guarantees the agreement, the post-term non-compete runs 3 years within 25 miles, and disputes go to arbitration in Utah. The cover pages carry a state-required risk factor stating that the franchisor's financial condition calls into question its ability to provide services and support, alongside risk factors on out-of-state dispute resolution, required sales performance and the number of unopened franchises.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 689 → 1101 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $1,139,162 (disclosed) ÷ midpoint investment $1,160,550 = 0.98×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 71% of franchised units, clearly described (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 8 years (since 2018) · 1,101 outlets · Item 3: 1 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- An area development agreement is available for developing multiple units, with a minimum of three; any larger number is set case by case. The up-front develo… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: One Crumbl location on a leased site of roughly 1,600–2,000 square feet
$848,566–$1,472,533 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $50,000 Disclosed
Flat, uniform fee for all franchisees; same $50,000 per-unit fee also applies under an area development agreement. Other required Item 5 payments to the franchisor are listed separately below — this figure is the named fee only. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $81,000 Disclosed
Cover page: total investment 'includes the $81,000 to $89,000 that must be paid to the franchisor or its affiliates' -- equal to the franchise fee plus the three required purchases above. $89,000 Disclosed
Cover page: total investment 'includes the $81,000 to $89,000 that must be paid to the franchisor or its affiliates' -- equal to the franchise fee plus the three required purchases above. |
| Total initial investment — low | $848,566 Disclosed
Total row of the single-location Item 7 table. The table's footnote states the figures exclude royalties and marketing fees. |
| Total initial investment — high | $1,472,533 Disclosed
|
| Midpoint of range | $1,160,550 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Crumbl Franchising, LLC; we do not fill gaps with estimates or third-party figures. The cover pages, Item 1, Item 5 and Item 7 do not state a minimum liquid capital requirement for applicants. Item 6 note 1 does require the franchisee to keep at least $30,000 of working capital in its operating account at all times, and Item 7 note 14 states the additional-funds amount cannot fall below $10,000; neither is described as a pre-qualification standard. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Crumbl Franchising, LLC; we do not fill gaps with estimates or third-party figures. No minimum net worth requirement for applicants is stated in the reviewed source. |
Figures are for one leased location. Item 7 excludes the cost of purchasing land or a building because the franchisor recommends leasing, and excludes royalties and marketing fees. The rent line covers three months only and assumes a negotiated free-rent build-out period. A tenant improvement allowance, if any, is not netted out. Line items add exactly to the disclosed totals. The three-unit area development table is roughly three times the single-unit table except that the development fee is $150,000 ($50,000 per unit, credited against each unit's initial franchise fee).
Item 7 line items (13)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee | $50,000 | $50,000 |
| Opening tech equipment package — Paid to the franchisor or an affiliate; iPads, televisions and other required technology. | $12,000 | $15,000 |
| Opening box and ingredient package — Paid to the franchisor or an affiliate; branded boxes, ingredients, emulsions and specialty packets. | $11,000 | $16,000 |
| Initial training fees plus travel, lodging, food and other training expenses — Assumes four attendees. The training fee itself is $8,000 (Item 5). | $25,000 | $35,000 |
| Real estate and improvements — No allowance for purchasing real property; the franchisor recommends leasing. | $350,000 | $700,000 |
| Rent — 3 months — Assumes annual rent of $50,000–$250,000 and a security deposit of one month's rent. | $16,666 | $83,333 |
| Professional fees — Architect approved by the franchisor, engineers, accountants and attorneys. | $10,000 | $50,000 |
| Equipment, furniture, fixtures, décor and supplies | $268,000 | $306,000 |
| POS system, computer hardware and software — Designated POS system and software; QuickBooks Online is also required. | $5,500 | $18,000 |
| Signs | $12,000 | $32,000 |
| Miscellaneous opening costs — Utilities, entity formation, grand opening marketing, employee training, deposits, insurance and licenses. | $15,000 | $45,000 |
| Opening inventory | $12,000 | $22,000 |
| Additional funds — 3 months — Estimated operating expenses for the first three months, ignoring cash inflows; cannot fall below $10,000. | $61,400 | $100,200 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Crumbl Franchising, LLC (table begins PDF p. 29) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (1)
| Format | Low | High | Fee |
|---|---|---|---|
| Three locations under an area development agreement | $2,545,698 | $4,417,599 | $150,000 |
Ongoing fees
FDD Item 6Royalty
8% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Crumbl Franchising, LLC
- Document
- FDD 2026, issued 2026-04-06, amended 2026-05-13
- Item
- Item 6
- Page
- PDF p. 16
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640903
Payable weekly, to be received by the Tuesday following a Monday–Saturday sales week. Item 6 states gross sales include all revenue from the franchise business but exclude sales tax.
Brand advertising fund
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Crumbl Franchising, LLC
- Document
- FDD 2026, issued 2026-04-06, amended 2026-05-13
- Item
- Item 6
- Page
- PDF p. 17
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640903
Marketing fund fee payable weekly to the franchisor on the same schedule as the royalty.
Local marketing
0%–2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Crumbl Franchising, LLC
- Document
- FDD 2026, issued 2026-04-06, amended 2026-05-13
- Item
- Item 6 — Note 2 — Local Marketing
- Page
- PDF p. 27
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640903
Item 6 note 2 requires local advertising spending of 0% to 2% of monthly gross sales as determined by the franchisor; the current requirement is 0%. The franchisor may raise it on 60 days' notice but not above 2%.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 8% of gross sales Disclosed
Payable weekly, to be received by the Tuesday following a Monday–Saturday sales week. Item 6 states gross sales include all revenue from the franchise business but exclude sales tax. Payable weekly, to be received by the Tuesday following a Monday–Saturday sales week. Item 6 states gross sales include all revenue from the franchise business but exclude sales tax. |
|---|---|
| Advertising / brand fund | 2% of gross sales Disclosed
Marketing fund fee payable weekly to the franchisor on the same schedule as the royalty. Marketing fund fee payable weekly to the franchisor on the same schedule as the royalty. |
| Required local marketing | 0%–2% of gross sales Disclosed
Item 6 note 2 requires local advertising spending of 0% to 2% of monthly gross sales as determined by the franchisor; the current requirement is 0%. The franchisor may raise it on 60 days' notice but not above 2%. Item 6 note 2 requires local advertising spending of 0% to 2% of monthly gross sales as determined by the franchisor; the current requirement is 0%. The franchisor may raise it on 60 days' notice but not above 2%. |
| Technology / software | $650/month Disclosed
Current monthly technology fee, payable by the first Tuesday of the month; the franchisor may update it in the manuals. Current monthly technology fee, payable by the first Tuesday of the month; the franchisor may update it in the manuals. |
| Advertising cooperative | 1%–2% of gross sales Disclosed
Payable only if the franchisor establishes an advertising cooperative in the franchisee's area. Spending made through the cooperative counts toward the local advertising obligation. Payable only if the franchisor establishes an advertising cooperative in the franchisee's area. Spending made through the cooperative counts toward the local advertising obligation. |
| Transfer fee | $10,000 one-time Disclosed
Payable on the sale of a majority or all of the franchisee's interest. A reduced $500 minority transfer fee applies to certain transfers of 50% or less in the aggregate. A transferee training fee of $8,000 per session also applies, and transferring an area development agreement costs $20,000. Guarantors remain liable unless released. Payable on the sale of a majority or all of the franchisee's interest. A reduced $500 minority transfer fee applies to certain transfers of 50% or less in the aggregate. A transferee training fee of $8,000 per session also applies, and transferring an area development agreement costs $20,000. Guarantors remain liable unless released. |
| Renewal fee | $2,500 one-time Disclosed
Successor franchise fee, payable before entering into a successor franchise agreement and only if the franchisee meets the agreement's requirements. Successor franchise fee, payable before entering into a successor franchise agreement and only if the franchisee meets the agreement's requirements. |
| Royalty + ad fund (% of sales) | 10% Derived
|
Fee schedule (40 fees; 22 verified against the source, 18 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 8% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 16 | |
| Marketing Fund Fee | 2% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 17 | |
| Advertising Cooperative | 1%–2% of gross sales | varies | No | verified (2-pass) | Item 6, p. 17 | Only if we form a local/regional advertising cooperative in your area; not currently established for most territories. |
| Local Marketing (required local advertising spend) | 0%–2% of gross sales | monthly | Yes | verified (2-pass) | Item 6, p. 27 | Franchisor may raise the requirement on 60 days' notice, up to a 2% of gross sales/month ceiling; currently set at 0%. |
| New Primary Owner or New Manager Training | $4,000 | per event | Yes | verified (tie-break) | Item 6, p. 17 | Charged whenever a new primary owner or new manager must be trained; franchisee also pays travel, lodging and food for trainees. |
| Annual Training Fee | $500 | per event | No | verified (tie-break) | Item 6, p. 18 | Due on demand; at the franchisor's discretion up to two times each calendar year it may require the primary owner and/or designated manager to attend. Sessions typically last one to three days; travel and lodging are extra. |
| Additional In-Person Training or Assistance | $500 | per event | No | verified (tie-break) | Item 6, p. 18 | As requested by the franchisee or required by the franchisor; franchisee also pays travel, lodging and food for its attendees and the franchisor's representatives. |
| Late Fees | $25 | varies | No | single-pass | Item 6, p. 20 | Charges begin to accrue after the due date of any required payment or report. [Listed by one verification pass only (A); not independently confirmed.] |
| Interest | 18% of other | varies | No | verified (tie-break) | Item 6, p. 20 | Or the maximum allowed by state law, whichever is less; begins accruing after the due date of any required payment. |
| NSF Fees | $50 | varies | No | single-pass | Item 6, p. 20 | Or maximum allowed by state law, whichever is less. [Listed by one verification pass only (A); not independently confirmed.] |
| Conference or Seminar Fee | $0 | per event | Yes | verified (tie-break) | Item 6, p. 20 | Franchisor's then-current fee, currently $0; attendance at franchisor-called meetings is required (Items 11 and 15) and travel, lodging and food are always the franchisee's. |
| Supplier Evaluation Fee | $2,000 | per event | No | single-pass | Item 6, p. 21 | Payable only if franchisee wants an unapproved supplier evaluated for approval. [Listed by one verification pass only (A); not independently confirmed.] |
| Fees on Default | Not stated | varies | No | verified (tie-break) | Item 6, p. 21 | On demand as incurred, in addition to other payments to the franchisor, on default. |
| Audit Charge | Not stated | varies | No | verified (tie-break) | Item 6, p. 21 | Payable if an audit shows a gross-sales understatement of 2% or more, records are unorganized or unavailable, the franchisee fails to report gross sales, or fails to retain required records. |
| Interim Management Fee | $500 | per event | No | single-pass | Item 6, p. 21 | If franchisor elects to operate franchisee's business during unapproved closing/absence/incapacity/death or noncompliance. [Listed by one verification pass only (A); not independently confirmed.] |
| Interim Training Fee | $500 | per event | No | verified (tie-break) | Item 6, p. 22 | Payable if the franchisor elects to provide additional training because the franchisee is not in compliance with the franchise agreement or manuals; franchisee also pays travel, lodging and food for the franchisor's representatives. |
| Gift Card Program Fee | 5%–15% of other | per event | Yes | verified (tie-break) | Item 6, p. 22 | Payable with royalty or on demand on all gift card and similar transactions; the fee and the underlying gift card and incentive programs are updated periodically in the manuals. Wide 3x band, manual-driven; a material unquantified cost for a brand with a large gift-card business. |
| System Non-Compliance | Tiered (base $250) | varies | No | single-pass | Item 6, p. 23 | Issued in franchisor's sole discretion for violations of the franchise agreement/manuals. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | No | verified (2-pass) | Item 6, p. 23 | Arises from franchisee's acts, errors or omissions in operating the business. |
| Technology Fee | $650 | monthly | Yes | verified (2-pass) | Item 6, p. 23 | May be updated periodically in the manuals. |
| Centralized Billing Fee | Not stated | varies | No | verified (tie-break) | Item 6, p. 24 | Only if the franchisor implements and administers a centralized billing program to collect and remit amounts owed to it, its vendors or the franchisee's vendors, including for delivery and audit services. |
| Store Inspection Fee | Not stated | annual | Yes | verified (tie-break) | Item 6, p. 24 | The franchisor currently requires two to four third-party inspections per year (food safety, operational compliance, customer service, brand standards) and may require additional inspections after a failure or non-compliance. |
| Transaction Processing Fee | 2.4%–4% of other | per event | Yes | verified (tie-break) | Item 6, p. 24 | Payable on each transaction through the required POS/merchant processor; the franchisor may update the rate periodically in its manuals. Note 8 (page 28): 'Our merchant processor charges a variable merchant transaction fee, which currently averages to around 2.36% per transaction... We retain/receive the difference.' |
| Dispute Resolution Fees | Not stated | varies | No | single-pass | Item 6, p. 24 | As incurred/on demand when a dispute arises. [Listed by one verification pass only (A); not independently confirmed.] |
| Tax Reimbursement Fee | Not stated | varies | No | single-pass | Item 6, p. 25 | Only if a taxing authority assesses sales/use/other tax on amounts paid to franchisor. [Listed by one verification pass only (A); not independently confirmed.] |
| Insurance Procurement Fee | 10% of other | varies | No | single-pass | Item 6, p. 25 | Only if franchisee fails to hold/maintain its own required insurance. [Listed by one verification pass only (A); not independently confirmed.] |
| PCI and DSS Audit Reimbursement Fee | Not stated | varies | No | single-pass | Item 6, p. 26 | Only if franchisee is non-compliant with PCI/DSS and franchisor audits. [Listed by one verification pass only (A); not independently confirmed.] |
| Reimbursement Fee | 10% of other | varies | No | single-pass | Item 6, p. 26 | Only if franchisor is required to pay a customer reimbursement. [Listed by one verification pass only (A); not independently confirmed.] |
| Marketing Materials | Not stated | varies | No | verified (tie-break) | Item 6, p. 26 | Only if the franchisee wants additional copies of marketing materials. |
| Document Preparation Fee | $250 (min $250) | varies | No | single-pass | Item 6, p. 26 | If franchisor must prepare documents regarding changes/matters pertaining to franchisee. [Listed by one verification pass only (A); not independently confirmed.] |
| Marketing Assistance Fee | $75 | per event | No | verified (tie-break) | Item 6, p. 26 | Only if the franchisee requests the franchisor's help developing marketing materials or promotional programs. |
| QuickBooks Online Subscription | $70 | monthly | Yes | verified (tie-break) | Item 11, p. 47 | Mandatory: the franchisee must use QuickBooks Online for required accounting and reporting and must give the franchisor independent access to the account. Required per Item 11's Accounting section and Item 7 Note 10; not a line item in the Item 6 fee table. |
| Franchise Agreement Transfer Fee | $10,000 | one time | No | single-pass | Item 6, p. 18 | Payable when selling a majority/all interest in the franchise, prior to approval. [Listed by one verification pass only (A); not independently confirmed.] |
| Minority Transfer Fee | $500 | one time | No | single-pass | Item 6, p. 19 | Reduced fee for transfers among existing owners totaling <=50% aggregate ownership. [Listed by one verification pass only (A); not independently confirmed.] |
| Transferee Training Fee | $8,000 | one time | No | verified (tie-break) | Item 6, p. 19 | Charged to a new transferee owner upon an approved transfer; the transferee also pays travel, lodging and food for its trainees. |
| Relocation Fee | $2,500 | one time | No | single-pass | Item 6, p. 20 | If franchisee requests approval to relocate and franchisor agrees. [Listed by one verification pass only (A); not independently confirmed.] |
| Successor Franchise Fee | $2,500 | one time | No | single-pass | Item 6, p. 20 | Payable prior to entering a successor (renewal) franchise agreement, roughly every 10 years. [Listed by one verification pass only (A); not independently confirmed.] |
| Post-Termination Liquidated Damages | Not stated | one time | No | single-pass | Item 6, p. 25 | Only if the franchise agreement is terminated before expiration (other than non-renewal/mutual termination). [Listed by one verification pass only (A); not independently confirmed.] |
| De-identification Fee | $10,000 | one time | No | single-pass | Item 6, p. 25 | Only if franchisee fails to comply with post-termination de-identification obligations. [Listed by one verification pass only (A); not independently confirmed.] |
| Area Development Agreement Transfer Fee | $20,000 | one time | No | single-pass | Item 6, p. 26 | Only for area developers transferring their area development agreement. [Listed by one verification pass only (A); not independently confirmed.] |
Item 6 also lists supplier evaluation ($2,000 plus expenses), relocation ($2,500), interim management and interim training ($500 per day per representative), NSF ($50), centralized billing (cost plus a 5%–15% administrative fee), insurance procurement (cost plus 10%), de-identification ($10,000 plus $500 per day of default), audit charges, indemnification and post-termination liquidated damages. Fees not marked with an asterisk may be changed by the franchisor, but no fee may rise by more than 100% of its amount at the start of the term.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: 776 franchised Crumbl locations in the United States that operated continuously through all of calendar 2025 and timely submitted complete financial reports by the first issuance date of the disclosure document. Item 19 states 1,048 franchised outlets operated continuously through 2025, so the reporting group is about 74% of that pool. Of the 1,101 franchised outlets open at the end of 2025, 272 were excluded for not timely submitting complete financial information and 53 for not operating the whole year. A further 8 locations that closed during 2025 are excluded; the franchisor states none of them had been open less than 12 months before closing. No company-owned outlets are included (there were none at the end of 2025). The locations sit in territories of approximately 40,000 to 150,000 people across several states.
Qualifications: The representation covers gross sales only. Item 19 states expressly that the figures do not reflect the costs or expenses that must be deducted to reach net income or profit, and no cost, margin or profit data appears anywhere in the item. The data set is a self-selected subset: only 776 of the 1,048 franchised outlets that operated continuously through 2025 submitted complete reports on time, so about 26% of otherwise eligible outlets are missing and the effect of their absence is not quantified. Locations that opened during 2025 and the 8 that closed during 2025 are excluded, which removes newer and discontinued units from the picture. The figures come from franchisee-submitted financial reports; the item does not state that they were audited or independently verified. The reported spread is wide, from $365,129 to $3,421,762, and fewer than half the reporting locations reached the average. Territories in the sample hold roughly 40,000 to 150,000 people, which may not match a prospective territory. Written substantiation is available on reasonable request.
View full Item 19 disclosure and tables
Crumbl makes one financial performance representation: calendar-2025 gross sales for the 776 franchised locations that were open all year and filed complete reports on time. The average was $1,139,162 and the median $1,093,071, with the best location at $3,421,762 and the weakest at $365,129. Only 346 locations, about 45%, reached the average, so the mean sits above the typical store. These are top-line sales before food, labor, rent, royalties, marketing contributions and every other cost, and the FDD supplies none of those figures. The sample also leaves out 272 continuously-operating locations that did not report on time, 53 that did not run the full year and 8 that closed during 2025, so it should not be read as a picture of the whole system.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Gross sales — average of 776 reporting franchised locations open all of calendar 2025 45% of units met or exceeded Item 19 states 346 of the 776 locations (approximately 45%) met or surpassed this average. | Franchised locations open continuously through 2025 that timely reported Average | $1,139,162 | 776 | CY2025 | FDD p.70 |
| Gross sales — median of the same 776 reporting franchised locations | Franchised locations open continuously through 2025 that timely reported Median | $1,093,071 | 776 | CY2025 | FDD p.70 |
| Gross sales — highest single location in the reporting group | Franchised locations open continuously through 2025 that timely reported High | $3,421,762 | 776 | CY2025 | FDD p.70 |
| Gross sales — lowest single location in the reporting group | Franchised locations open continuously through 2025 that timely reported Low | $365,129 | 776 | CY2025 | FDD p.70 |
| Locations that met or surpassed the average gross sales figure 45% of units met or exceeded Stated as approximately 45% of the 776 reporting locations. | Franchised locations open continuously through 2025 that timely reported Count | 346 | 776 | CY2025 | FDD p.70 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 689 | 288 | 6 | 0 | 1 | 0 | 970 | 44 | 2 |
| 2024 | 970 | 100 | 12 | 0 | 0 | 0 | 1,058 | 62 | 1 |
| 2025 | 1,058 | 52 | 8 | 1 | 0 | 0 | 1,101 | 82 | 0 |
Disclosed 2026 Franchise Disclosure Document — Crumbl Franchising, LLC, Item 20, Tables 1–3 (PDF p. 71). All five tables foot and reconcile: Table No. 3 totals (start plus openings less closures) match the Table No. 1 franchised year-end counts for each of 2023, 2024 and 2025. Growth slowed sharply across the period — 288 franchised openings in 2023, 100 in 2024 and 52 in 2025 — while transfers between franchisees rose each year, from 44 to 62 to 82. Closures stayed low relative to system size: 6, 12 and 8 terminations plus one non-renewal in 2025, with no outlets recorded as ceasing operations for other reasons. The company-owned side wound down to zero, the last unit having been sold to a franchisee in 2025. The tables cover United States outlets and include Puerto Rico; Canadian and other international outlets are franchised by separate affiliates and are not shown. Item 20 also discloses that some current and former franchisees have signed confidentiality provisions restricting what they may say about their experience, and lists an independent Crumbl Franchise Partner Association.
Source data notes (5) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table 1 2023: Table No. 1 (page 71) does not foot for FY2023. The Total Outlets row prints 691 outlets at the start of the year, but the component rows are Franchised 689 and Company Owned 1, which sum to 690. The Total row's printed net change of +281 is internally consistent with its own start and end (972 - 691 = 281) but not with the components, whose net changes sum to +282 (Franchised +281, Company Owned +1). The 2024 and 2025 Total rows foot correctly (972 = 970 + 2, 1059 = 1058 + 1, 1101 = 1101 + 0). — Confirmed on the page image of page 71: the printed table genuinely contradicts itself. Quoting both: component rows 'Franchised 2023 689 970 +281' and 'Company Owned 2023 1 2 +1' against total row 'Total Outlets 2023 691 972 +281'. The correct start-of-year total is 690 and the correct net change is +282. Corroboration keeps this minor: the franchised figures the site relies on (689 start, 970 end) are matched exactly by Table No. 3's TOTAL row on page 80, and the company-owned figures (1 start, 2 end) are matched exactly by Table No. 4's Total row on page 81, so only the systemwide start-of-year total is wrong. The error is 1 unit, or 0.15% of the 689 start-of-year franchised base, well under the 0.5% threshold, and it cannot change the direction of growth, which is strongly positive in
- [C/minor] Table 2 2025: Table No. 2 (transfers of outlets from franchisees to new owners) does not foot for FY2025. The TOTAL printed on page 75 is 82, but the 37 state rows on pages 72-74 sum to 81. The 2023 and 2024 columns foot exactly at 44 and 62. — Ruled out an extraction error by reading the page images of all four Table No. 2 pages. Every one of the 37 states carries a complete 2023/2024/2025 block, and the state values transcribe exactly as extracted; the 2025 column reads 2 + 0 + 3 + 15 + 2 + 1 + 0 + 2 + 5 + 0 + 0 + 1 + 3 + 5 + 0 + 0 + 0 + 4 + 0 + 0 + 0 + 2 + 3 + 0 + 2 + 4 + 3 + 0 + 0 + 0 + 3 + 14 + 5 + 1 + 1 + 0 + 0 = 81, against the printed TOTAL of 82 on page 75. That the identical reading of the 2023 and 2024 columns reproduces the printed 44 and 62 exactly validates the method, so the one-unit gap is in the document, not in the reading. Minor: transfers do not enter unit counts, openings, closures or growth, the printed TOTAL that the site uses is the 82, and the discrepancy is 1 transfer, about 0.09% of the 1,058 start-of-y
- [D/minor] Table 3 / Table 4: Table No. 4 (page 81) records 1 company-owned outlet 'Sold to Franchisee' in 2024 (Utah) and 1 in 2025 (California), but Table No. 3 (page 80) has no column for outlets acquired from the franchisor, and its franchised TOTAL rows foot exactly without one. Those two units therefore appear as company-outlet decreases with no separately identified franchised-outlet increase. — A limitation of the table template rather than an error. The standard Item 20 Table No. 3 carries increase and decrease columns only for outlets opened, terminations, non-renewals, outlets reacquired by the franchisor and cessations for other reasons; there is no reciprocal 'acquired from the franchisor' column, so a franchisor-to-franchisee sale can only be absorbed within 'Outlets Opened'. Everything still reconciles at the printed totals: Table No. 3 foots in all three years (689 + 288 - 6 - 1 = 970; 970 + 100 - 12 = 1058; 1058 + 52 - 8 - 1 = 1101), its state rows sum to each TOTAL in every column, its franchised figures match Table No. 1's franchised row exactly, and Table No. 1's 2024 total change of +87 equals franchised +88 less company-owned -1. The reverse direction reconciles exp
- [D/minor] Item 19 / Table 3 2025: Item 19 (page 70) says '8 that closed during 2025' were excluded from the financial performance data set, but Table No. 3 (page 80) records 8 terminations plus 1 non-renewal (Oregon) for 2025, that is 9 franchised outlets that ceased operating during the year. — A definitional difference, not a numerical error: Item 19's '8 that closed' counts terminations, while Table No. 3 separates a franchise-agreement non-renewal into its own column, and an outlet whose term simply expired is not naturally described as having 'closed'. Both printed figures are corroborated. Table No. 3's 2025 TOTAL row foots exactly (1058 + 52 - 8 - 1 = 1101) and its state rows sum to every column total, and Item 19's own population arithmetic reconciles to Table No. 1: 1,101 franchised outlets operating at end of 2025, less 272 that did not timely report and 53 that did not operate the entire year, equals the 776 in the data set. Site closure metrics should use Table No. 3's 9 cessations (8 terminations + 1 non-renewal) for 2025, not Item 19's 8.
- [D/minor] Table 1 / Table 2 / Table 3 / Table 5: Table No. 1 is headed 'Systemwide Outlet Summary', but the state breakdowns in Tables 2, 3 and 5 list only U.S. states plus Puerto Rico and Washington DC, with no Canadian provinces or other countries. Item 1 (pages 10-11) discloses Crumbl Canada, Inc., franchising Canadian locations since August 2024, and Crumbl International, Inc., franchising outside the United States since August 2025, as separate franchisor affiliates. The FDD nowhere states that Item 20's counts are U.S.-only. — A legitimate scoping difference: an Item 20 discloses the outlets of the franchisor making the disclosure, and the Canadian and international outlets belong to separate franchisor entities that make their own offerings, so they are correctly outside these tables despite the 'Systemwide' label. Nothing in the arithmetic is affected - Tables 1, 3, 4 and 5 are internally consistent and cross-agree, and Table No. 5 foots at 207 franchise agreements signed but not opened and 98 projected new franchised outlets. Both passes independently reached the same reading. The practical consequence is presentational: the unit counts published for this brand describe Crumbl Franchising, LLC's U.S. system, not the worldwide Crumbl brand, and should be labelled that way rather than as systemwide or global.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 1 | 0 | 1 | 0 | 0 | 2 |
| 2024 | 2 | 0 | 0 | 0 | 1 | 1 |
| 2025 | 1 | 0 | 0 | 0 | 1 | 0 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — Crumbl Franchising, LLC
- Document
- FDD 2026, issued 2026-04-06, amended 2026-05-13
- Item
- Item 15
- Page
- PDF p. 58
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640903
The primary owner must personally participate in the direct operation and supervision of the business full time for at least the first 60 days of operation. After that, on-premises supervision may be provided by either the primary owner or a designated manager certified by the franchisor, who must be on site for the majority of operating hours and may not manage more than one Crumbl store. The manager need not hold equity. The primary owner still has to handle accounting and decision-making, complete all required training, attend franchisee meetings, take part in site selection and personnel decisions, and stay in contact with the store at least weekly.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
The primary owner must personally participate in the direct operation and supervision of the business full time for at least the first 60 days of operation. After that, on-premises supervision may be provided by either the primary owner or a designated manager certified by the franchisor, who must be on site for the majority of operating hours and may not manage more than one Crumbl store. The manager need not hold equity. The primary owner still has to handle accounting and decision-making, complete all required training, attend franchisee meetings, take part in site selection and personnel decisions, and stay in contact with the store at least weekly. The primary owner must personally participate in the direct operation and supervision of the business full time for at least the first 60 days of operation. After that, on-premises supervision may be provided by either the primary owner or a designated manager certified by the franchisor, who must be on site for the majority of operating hours and may not manage more than one Crumbl store. The manager need not hold equity. The primary owner still has to handle accounting and decision-making, complete all required training, attend franchisee meetings, take part in site selection and personnel decisions, and stay in contact with the store at least weekly. |
|---|---|
| Initial training | Initial training runs in three parts and must be completed by the primary owner and the manager(s) before opening: an online self-guided course of roughly 15 to 20 hours; an optional in-person session at the franchisor's Lindon, Utah headquarters, a franchise location or another designated site, currently about 10 to 14 days, required at the franchisor's discretion; and a final in-person session of about 6 to 12 days at the franchisee's own store, usually spanning the grand opening. Total length is generally 18 to 29 days. The program table shows 14 to 24 hours of classroom or online instruction and 82 to 106 hours of on-the-job training across marketing and technology, financials, inventory and ordering, scheduling, cookie quality, operations and deliveries, food safety, and grand-opening week. Attendees may have to pass a technical exam with a score of 85%. The training fee is $8,000; the franchisee pays travel, lodging, food and salaries for attendees. Disclosed
Item 11 estimates the total cost of initial training at $20,000 to $30,000 assuming four attendees, while the Item 5 and Item 7 tables show a combined training-and-travel line of $25,000 to $35,000. The two ranges do not match exactly. |
| Multi-unit / development options | An area development agreement is available for developing multiple units, with a minimum of three; any larger number is set case by case. The up-front development fee is $50,000 multiplied by the number of units, credited against each unit's $50,000 initial franchise fee as that unit is developed. The developer signs the then-current franchise agreement for each unit, which may differ from the current form. Territory size and the development schedule are negotiated. Item 7 estimates $2,545,698 to $4,417,599 to develop three locations. Area developers receive no exclusive territory and must keep to the development schedule to retain territorial rights. Under a single-unit franchise agreement, Item 12 states the franchisee gets no right or option to acquire additional franchises. Disclosed
Drawn from Item 1 (page 11), Item 5 (page 15), Item 7 (pages 31–33) and Item 12 (pages 51–52). |
| Territory (Item 12) | No exclusive territory is granted. The franchisee operates from one approved location within a negotiated area; Item 12 states territories are generally set between 1 and 2 miles from the premises in all directions, with no minimum size, and boundaries may be drawn by zip code, streets, county lines, market area or radius. The franchisor may redraw the boundaries at the end of the initial or any successor term, or if the territory's population reaches 100,000 or more. The franchisee may not open another outlet, provide mobile or off-site service, serve customers in another franchisee's territory, or sell through other channels including the internet without permission. The franchisor and its affiliates reserve the right to sell Crumbl products within the territory through non-traditional outlets, national accounts, the internet, apps, wholesale and other channels without paying compensation, and its affiliate Crust Club Franchising, LLC may solicit orders in the territory under a different trademark. To keep the franchise, the franchisee must reach at least $100,000 in annual gross sales starting in the first full calendar year of operation; falling short can lead to a sales performance plan and possible termination. Disclosed
The minimum sales requirement and the 'no exclusive territory' statement appear on page 51. |
| Initial term | 10 years Disclosed
The term begins on signing the franchise agreement, not on opening. |
| Renewal | A franchisee in good standing may apply for a successor franchise for an additional 10-year term. Written notice is required between 6 and 12 months before the current term expires. The franchisor evaluates the application under substantially the same standards it applies to new applicants plus its own experience with the franchisee. Qualifying conditions include no history of default, payment of the $2,500 successor franchise fee, modernizing the store to then-current standards, signing a general release subject to state law, and signing the then-current franchise agreement, which may carry materially different terms. Disclosed
|
| Staffing | The store must operate 6 days a week year-round during hours the franchisor sets, which may range from 8:00 a.m. to midnight, with no operation on Sundays except in a bona fide emergency or with written permission, and closure permitted on New Year's Day, Thanksgiving, Christmas Eve and Christmas Day. Either the primary owner or a store manager trained by the franchisor must be on site for the majority of operating hours, and both must be reachable during all operating hours. Item 7 assumes four people attend initial training. The FDD does not state a typical total headcount per store. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 1 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 1 matter(s) disclosed Disclosed Item 3 lists one matter: Lisa Watson and Angela Keers v. Crumbl LLC, Crumbl IP, LLC, Crumbl Franchising, LLC and Crumbl Enterprises, LLC, Case No. 2:23-cv-01770-DJC-CKD, filed August 21, 2023 in the U.S. District Court for the Eastern District of California. It is a putative customer class action alleging that the way Crumbl's service fees were displayed and charged at ordering was fraudulent and misleading. The FDD states the case is pending with a trial scheduled for later in 2026. No outcome is reported. No franchisee-initiated or franchisor-initiated actions are disclosed. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy is required to be disclosed. |
| Personal guaranty | Required Disclosed
Item 15 requires any individual who owns any equity interest in the franchise business to personally guarantee performance of all obligations under the franchise agreement and to be personally bound by and liable for every default. On a transfer, existing guarantors remain liable unless the franchisor releases them. |
| Non-compete | During the term, Item 17 bars any involvement in a competing business anywhere without written consent. Item 15 goes further: neither the franchisee, its owners nor its management employees may hold an interest in or business relationship with any cookie, soda or bakery dessert business — including any business where cookies, donuts, sodas or other bakery desserts exceed 10% of gross sales — during the term and for 3 years afterward. Item 17 sets the post-term covenant at 3 years, covering the former territory, anywhere within 25 miles of it, and anywhere within 25 miles of any other Crumbl franchised, company-owned or affiliate-owned location. Competing during that window tolls and extends the period by the length of the competition plus 6 months. A parallel 3-year covenant bars diverting business or customers and soliciting other franchisees to end their contracts. Owners and employees must sign brand protection agreements. All of this is stated to be subject to state law. Disclosed
The in-term covenant is provision (q) on page 63; the 10%-of-sales test for competing businesses appears in Item 15 on page 59. |
| Transfer restrictions | Every transfer requires the franchisor's approval, which Item 17 says will not be unreasonably withheld. Conditions include that the franchisee is not in default, all fees are current, the buyer qualifies and signs the then-current franchise agreement, transfer and training fees are paid, the purchase agreement is approved, training for the transferee is arranged, and the seller signs a release. The transfer fee is $10,000, or $500 for certain minority transfers, plus an $8,000 transferee training fee; transferring an area development agreement costs $20,000. Existing guarantors stay liable unless released. The franchisor holds a right of first refusal and may match any offer within 60 days of written notice. It may also buy all or part of the business at fair market value on termination or expiration, and has a purchase option if it receives an offer for a majority of its franchises, assets or stock. On death or disability, a new primary owner must be approved and a manager trained within 180 days, or the franchise assigned to an approved buyer. Disclosed
The death and disability provision (p) is on page 63; the $10,000 transfer fee, $500 minority transfer fee and $8,000 transferee training fee are in Item 6 on pages 18–19. |
| Termination / non-renewal | Item 17 states there are no provisions letting the franchisee terminate the agreement, subject to state law. The franchisor must have cause. Non-curable defaults include felony conviction, fraud, repeated defaults even if cured, harm or threat of harm to the public, abandonment and trademark misuse; curable defaults carry cure periods of 24 hours to 30 days. The franchisor may also terminate if an immediate family member holds an interest in a competing business, and terminating one agreement lets it terminate the area development agreement and other franchise agreements. Falling short of the $100,000 minimum annual gross sales requirement can lead to a performance plan and possible termination. On early termination other than non-renewal or mutual termination, liquidated damages equal the average monthly royalty of the previous 12 months multiplied by the lesser of 36 months or the remaining term, discounted to present value at 5%, and the franchisor states this covers lost royalties only and does not waive other remedies. Post-termination obligations include full de-identification, with a $10,000 charge toward enforcement costs and $500 per day while de-identification is outstanding. Disclosed
Liquidated damages and the de-identification fee are set out in Item 6 on page 25 and its notes 3 to 5 on page 27. |
| Supplier restrictions (Item 8) | The franchisee must buy or lease a long list of items to the franchisor's specification from the franchisor, its affiliates or designated suppliers, including proprietary mixes, ingredients, premium chocolate chips, uniforms, equipment, signs, décor, paper goods and boxes, logoed products, advertising materials, food safety and audit services. For the opening tech and equipment package, the opening box and ingredient package, specialized software and the POS and productivity-tracking software, the franchisor or an affiliate is the only approved supplier. Item 8 estimates that approved or required sources will account for 85% to 95% of purchases both in opening and in operating the business. Affiliate Crumbl Foods, LLC sells ingredients and food products to franchisees and the franchisor's owners and officers hold an interest in it. In fiscal 2025 the franchisor's own revenue from selling products and services to franchisees was $542,321, about 0.3% of its total revenue of $155,690,730; Crumbl Foods, LLC took in $35,583,209 from such sales on an unaudited basis. Mark-ups are generally capped at 100%, typically 20% to 30% on services and 30% to 40% on goods. The franchisor or its affiliates also collect a 1% to 2% administrative fee from the primary designated food supplier on everything Crumbl locations buy, and roughly 3% to 6% per case in rebates from two designated chocolate suppliers. Having an unapproved supplier evaluated costs $2,000 plus expenses. Disclosed
The revenue and mark-up figures are on page 37. Item 8 states next-year revenue from franchisee purchases at about 0.03% while describing the fiscal 2025 figure as approximately 0.3%; the two percentages are inconsistent and $542,321 of $155,690,730 works out to about 0.35%. |
| Dispute resolution | Item 17 requires, for most disputes, a face-to-face meeting followed by mediation and then arbitration or litigation, with all disputes to be resolved by arbitration in Utah, subject to state law. The forum is Salt Lake County or the county where the franchisor's headquarters then sits; Utah law, the Federal Arbitration Act and the U.S. Trademark Act govern. The area development agreement calls for mediation and arbitration in Salt Lake City. Item 6 states the franchisee pays half of the mediation or arbitration fees and the prevailing party recovers legal fees and expenses. The cover pages carry a state-required risk factor noting that out-of-state dispute resolution may cost more and may lead to a less favorable settlement. Disclosed
Choice of forum (v) and choice of law (w) are on page 65; the area development agreement's matching provisions are on pages 68–69. |
- The cover pages list four state-required special risks: out-of-state dispute resolution in Utah; a required minimum sales performance level whose loss can cost territorial rights or the franchise; a significant number of franchise agreements signed for outlets that have not opened; and a statement that the franchisor's financial condition, as shown in its Item 21 financial statements, calls into question its financial ability to provide services and support.
- Item 20 Table No. 5 shows 207 franchise agreements signed as of December 31, 2025 for outlets not yet open, against 98 projected openings in the next fiscal year and 52 actual openings in 2025.
- Franchised openings fell from 288 in 2023 to 100 in 2024 to 52 in 2025, while transfers between franchisees rose from 44 to 62 to 82 over the same years.
- No exclusive territory. Territories are generally only 1 to 2 miles in radius, may be redrawn at renewal or once territory population reaches 100,000, and the franchisor reserves non-traditional outlets, national accounts and online, app, wholesale and other channels within the territory without compensation.
- Affiliate Crust Club Franchising, LLC franchises a bakery concept that the FDD says sells or may sell goods similar to a Crumbl franchisee's and may solicit orders inside the territory; the franchisor decides conflicts between the two systems at its sole discretion.
- A minimum of $100,000 in annual gross sales is required from the first full calendar year onward, and shortfalls can lead to a performance plan and possible termination.
- The franchisee must keep at least $30,000 of working capital in the operating account at all times; dropping below that is a default under the franchise agreement.
- The franchisor may levy fines of $250 to $1,000 per violation for system non-compliance, at its sole discretion, relying on evidence including customer complaints it finds credible.
- Stores must close on Sundays, and the franchisor sets operating hours that may run from 8:00 a.m. to midnight, 6 days a week.
- Item 20 discloses that some current and former franchisees have signed confidentiality clauses restricting what they may say about their experience in the system.
- Item 12 states the franchisee has no right or option to acquire additional franchises under a single-unit agreement.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $911,330 | $1,139,162 | $1,310,036 |
| − Cost of goods / supplies assumption | $282,512 | $353,140 | $406,111 |
| − Payroll (excl. owner) assumption | $255,172 | $318,965 | $366,810 |
| − Occupancy assumption | $72,906 | $91,133 | $104,803 |
| − Other operating expenses assumption | $100,246 | $125,308 | $144,104 |
| − Royalty disclosed 8% of gross sales = $91,133 |
$72,906 | $91,133 | $104,803 |
| − Marketing Fund Fee disclosed 2% of gross sales = $22,783 |
$18,227 | $22,783 | $26,201 |
| − Local Marketing (required local advertising spend) assumption 0% of revenue (your assumption; FDD requires at least 0% — Franchisor may raise the requirement on 60 days' notice, up to a 2% of gross sales/month ceiling; currently set at 0%.) = $0 |
$0 | $0 | $0 |
| − Technology Fee disclosed $650/month × 12 = $7,800 |
$7,800 | $7,800 | $7,800 |
| − QuickBooks Online Subscription disclosed $70/month × 12 = $840 |
$840 | $840 | $840 |
| = Modeled operating result before the items below (EBITDA-style) | $100,720 | $128,059 | $148,564 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | $40,720 | $68,059 | $88,564 |
| − Illustrative debt service assumption | $131,543 | $131,543 | $131,543 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$90,823 | −$63,484 | −$42,979 |
| Modeled operating margin | 11.1% | 11.2% | 11.3% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 3 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- New Primary Owner or New Manager Training (Item 6, p. 17) — Recurs each time a new owner/manager is trained; not a fixed annual cadence.
- Gift Card Program Fee (Item 6, p. 22) — Needs a gift-card mix assumption (share of sales redeemed via gift card) before it can be converted to a percent of revenue.
- Store Inspection Fee (Item 6, p. 24) — Recurring and mandatory (two to four per year), but the base cost of an inspection is never stated, so no dollar amount can be modelled.
Charged on a base other than sales (not modeled): Transaction Processing Fee.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Crumbl Franchising, LLC · issued 2026-04-06 · amended 2026-05-13. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Crumbl Franchising, LLC Registry file 640903 · 383 pages Registered in Wisconsin with a registration effective date of April 9, 2026. Cover page reads 'Issuance Date: April 6, 2026, as amended May 13, 2026'. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-06; amended 2026-05-13 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-01): two independent AI reading passes plus tie-break re-inspection of every disagreement; 67 of 70 material fields confirmed (36 with the exact page citation re-confirmed), 3 corrected, 0 unresolved, 3 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (3)
- franchisor.business_since — Item 1 states the franchisor entity was organized in Utah on February 9, 2018 and began offering franchises in February 2018, but it does not say when the Crumbl concept itself first began operating; 2018 is recorded on the strength of the organization date.
- investment.liquidity_required and investment.net_worth_required — no applicant qualification thresholds appear in the cover pages, Item 1, Item 5 or Item 7; the $30,000 operating-account working capital covenant in Item 6 and the $10,000 additional-funds floor in Item 7 are operating requirements, not qualification standards, and are not used as substitutes.
- item19.population_share_of_system — recorded as 70.5, computed as 776 of the 1,101 franchised outlets open at December 31, 2025. Item 19 itself states the sample is approximately 74% of the 1,048 franchised outlets that operated continuously through 2025, a different denominator.
Extraction notes (9)
- Cover page reads 'Issuance Date: April 6, 2026, as amended May 13, 2026'; the Wisconsin registration effective date is April 9, 2026. Treated as the current document.
- franchise_fee_low and franchise_fee_high are both $50,000, the flat initial franchise fee for the right to operate one unit. The other initial payments to the franchisor and its affiliates (an $8,000 training fee, a $12,000–$15,000 tech equipment package and an $11,000–$16,000 box and ingredient package) are for training and goods rather than the franchise right, so they are recorded in the fee note and in item7_line_items rather than added into the franchise fee. The cover page's $81,000–$89,000 figure equals the sum of all four.
- Item 7 line items add exactly to the disclosed totals of $848,566 and $1,472,533; Item 20 Tables 1, 3, 4 and 5 all foot and cross-reconcile, so no arithmetic discrepancies were found in the outlet tables.
- Two internal inconsistencies were noted in the source and are recorded in the relevant notes rather than resolved: Item 11 estimates initial training cost at $20,000–$30,000 while the Item 5 and Item 7 tables show $25,000–$35,000 for training plus travel; and Item 8 gives fiscal 2025 revenue from franchisee purchases as 'approximately .3%' but forecasts 'about .03%' for the next fiscal year, with $542,321 of $155,690,730 working out to roughly 0.35%.
- Item 20 counts are United States outlets including Puerto Rico. Canadian and other international outlets are franchised by the separate affiliates Crumbl Canada, Inc. and Crumbl International, Inc. and do not appear in these tables, so the totals here are smaller than the worldwide Crumbl system.
- No annualization was needed: Item 19 discloses annual calendar-2025 gross sales directly, so headline_auv is taken as disclosed and annualized_auv is omitted.
- Verification 2026-09-01: correct /franchisor/business_since 2018 → None
- Verification 2026-09-01: correct /investment/franchise_fee_low 50000 → 81000
- Verification 2026-09-01: correct /investment/franchise_fee_high 50000 → 89000
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