FOR SALE: Crumbl Cookie Store in Sparks Nevada + Franchise Rights for 2 More Stores in Reno Area
SALE PENDING
Listing Overview
Up for sale is a Crumbl cookie store in Sparks Nevada + the franchise rights to build 2 additional Crumbl locations in the Reno/Sparks area. No other Crumbl franchises have been sold in the Reno/Sparks area, which will give the new owner exclusive rights to the entire Reno metropolitan area.
The Sparks store is located in the Sparks Galleria Shopping Center at 4731 Galleria Pkwy Suite 109, Sparks, NV 89436. It opened in mid-Feb 2022 and has averaged about $251k in revenue and $46.7k in net profit per month since its grand opening. Store build-out costs for the Sparks store totaled about $500,000.
This package deal also includes the rights to build 2 more stores in Reno metropolitan area. As you can see in the Crumbl store map below, this 1-store / 2-area portfolio will give the new owner complete control of the entire Reno/Sparks area.
The owner is selling these stores because he is also the Senior Vice President (SVP) of supply chain for Crumbl, which keeps him extremely busy. He is looking to cash out on this Sparks store to reduce his workload and offload some of his responsibilities and have more time for family and travel.
Asking Price: $2,500,000
The seller is asking $2.5 million for the package of the established store in Sparks, NV + the franchise rights to build 2 more stores in the Reno area.
P&L and Financial Information
Here is a simplified version of the Sparks store's P&L Statement for the 14-month period February 2022 - March 2023. Sign the NDA below to access the detailed monthly P&L Statement.
Please note that the P&L above includes manager salary (plus incentives), assistant manager wages, and all other wages and associated payroll taxes for shift leads, cooks, QC personnel, cashiers, etc.
The Sparks store had a huge grand opening and continued to do extremely well for several months. In fact, this store was Crumbl's highest-grossing opening out of the ~650 Crumbl locations that had opened up to that point in time. While the numbers have come back down to earth since its huge opening, it is still grossing around $180k per month and is one of Crumbl's best-performing stores.
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.
About the Market & Products
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.
Marketing & Advertising
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.
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.
Store Operations
The Crumbl corporation provides extensive direction, training and support with day-to-day store operations. In fact, the buyer will need to complete a 1-week introductory training course before he/she is able to take over operations of the stores.
Most of the ingredients for the cookies (along with certain paper goods and general kitchen supplies) are ordered from Sysco. Speciality ingredients (along with Crumbl-branded boxes, emulsions and tech equipment) are purchased directly from Crumbl. Brand-name candies and other ingredients are purchased from a third supplier (which will be disclosed during the due diligence phase).
As discussed above, the Crumbl corporation handles all of the stores' technology, updates, websites, menu and recipes, and national marketing campaigns. This allows the owner to focus on day-to-day logistics and operations.
The Sparks store has a manager, assistant manager, quality specialist, several shift leaders and around 25 bakers/general employees. Hourly wages range from $12.50 per hour up to around $16.50 per hour, with the manager salaried (plus incentives).
Included in the Sale
The sale includes all of the following...
- Existing leases for the Sparks, NV store
- Franchise rights to open 2 more stores in the Reno area
- All leasehold improvements, cooking/kitchen equipment, computer equipment and other fixed assets (totaling around $500,000)
- All employment contracts
- All social media accounts (Facebook, Instagram, Twitter, etc.)
- All contracts and relationships with existing distributors and suppliers
- 30 days of support to train you/your team on how to run the stores (in addition to the mandatory 1-week training the new owner must complete with the Crumbl corporation)
Buying Process
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 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 30-day due diligence period, we'll work closely with you and the seller to help you complete due diligence.
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 Store Coach Marketplace.