FOR SALE: 3 Crumbl Cookie Stores + 2 Additional Areas in California (Orange County)
LIST PRICE: $6,500,000
- Average Monthly Revenue: $167,601
- Average Monthly Net Profit: $31,993
- Profit Margin: Gross 40.1% / Net 19.1%
- Monthly Multiplier: See listing
- Business Created: Jul 2022
- Owner Hours Required: 10-12 hours per week
Up for sale are 3 Crumbl cookie stores in Orange County California + the rights to 2 additional nearby areas where 2 more Crumbl stores can be built. Once all 5 stores are built and opened, the entire coastal stretch from Long Beach to Newport Beach, along with the Santa Ana and Irvine metropolitan areas, will be covered (see the map below).
The Costa Mesa store is located in the Westport Square Shopping Center at 369 E. 17th St. #3, Costa Mesa, CA 92627. It opened in July 2022 and has averaged about $168k in revenue and $32k in net profit per month since its grand opening. Store build-out costs for the Costa Mesa store totaled about $575,000.
The Santa Ana store is located at Bristol Place in the Target parking lot. It is located in a densely populated area and is expected to be a very strong-performing store. The build-out began in summer of 2022 and has cost about $600,000. The store's grand opening will be on Friday, June 16, 2023 (shortly after this listing is posted).
The Huntington Beach store is located at Bella Terra, an extremely popular high-traffic open-air dining, shopping and entertainment center. Build-out costs will total right around $700,000. The owner expects this store to be the best-performing store in the portfolio based on its location and demographics. This store will open in late July or early August 2023.
This package deal also includes the rights to build 2 more stores in Irvine and in Tustin. As you can see in the Crumbl store map below, this portfolio of 5 stores/areas will give the new owner complete control of the massive, densely-populated area within the dotted lines.
The owner is selling these stores because he lives in Utah (not California) and doesn't want to continue traveling to California as much as he's had to the last couple years since his children are growing up.
Assets Included in the Sale
Please note that the P&L above includes manager wages and all other wages and associated payroll taxes for shift leads, cooks, QC personnel, cashiers, etc.
The current owner will of course give the eventual buyer the opportunity to conduct extensive due diligence, including an in-depth review of the P&L statements, Balance Sheets and other reports. The seller will also provide access to bank statements, credit card reports, merchant accounts and all other necessary reports to verify and confirm all of the figures shown in the P&Ls above.
Marketing & Traffic
Crumbl as a corporation has been absolutely killing it. Here is an excerpt from Crumbl's Franchising page on their corporate website:
"Since opening its doors five years ago, Crumbl has expanded to over 800+ bakeries in 49 states, making it the fastest-growing cookie company in the U.S."
Crumbl is widely known for their huge tasty cookies, weekly rotating menu, open-concept kitchens, large pink cookie boxes and their top-rated app (providing multiple ways to order cookies, including delivery, pickup, catering and shipping). The state of California (along with the entire United States) is already "sold out", meaning there are no additional franchise opportunities. The only way to own a Crumbl franchise in California is to purchase an existing store, as you have the opportunity to do by purchasing this business.
Crumbl considers itself a ""cookie tech company", priding itself not only on their gourmet cookies but also on using technology (including the Crumbl Cookies app) to gather consumer data, syndicate information and streamline the ordering process for customers. The Crumbl Cookies app has a 4.9-star rating with about 2.6 million reviews in the Apple App Store. (The Android app has a 4.8-star rating with around 405k reviews.) Unlike most food & drink shops that struggle mightily to get their customers to download and use their app, Crumbl has been wildly successful in that endeavor.
The rotating weekly menu plays a key role in generating excitement about new (and returning) recipes, which continually bring past customers back in to the store (or purchasing cookies online for delivery).
All Crumbl operators pay a 7%-of-revenue royalty fee (together with a 3% national advertising fee, both of which are included in the P&L above). This fee entitles operators to use Crumbl's brand name and intellectual property, technology and software (including the app), website, recipes, Crumbl-branded boxes and specialty ingredients, and corporate direction, training and support.
In addition to the 7%-of-revenue royalty fee, Crumbl store operators also pay a 3%-of-revenue national marketing fee, which the Crumbl corporation uses for national marketing campaigns. These general advertising campaigns strengthen the brand image and increase brand awareness, benefiting each individual store. This cost is included in the P&L above on the 'Franchise Fees' line item.
The 'Local Advertising Costs' line item in the P&L above shows additional advertising expenses the owner has incurred to do additional marketing locally (which has been quite minimal).
As discussed above, the Crumbl app is incredibly beneficial to Crumbl store operators. Notifications about the new cookies available each week are automatically sent to every customer with the app, generating excitement and, more importantly, orders.
You can make an offer for this business here. We will immediately present your offer to the sellers. If they accept your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted.
Once your offer is accepted, a 10- to 30-day due diligence period will begin (during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason). During this due diligence period, we'll work closely with you and the seller to help you complete due diligence and prepare to close.
Once the Asset Purchase Agreement (APA) is signed and the sale is completed, we will update this page to let other interested parties know that the sale has been finalized and remove this listing from the Biz Sellers Marketplace.
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