is crumbl going out of business is a question that has grown louder as Crumbl faces franchise complaints, lawsuits, social media criticism, and a few high-profile closures. The brand went from one location in Logan, Utah to a household name in under six years. That kind of growth creates both fans and skepticism, which is why some people now wonder if the sugar rush is wearing off.
As of 2025, Crumbl Cookies is not going out of business. The brand operates over 1,000 locations across the US, making it one of the fastest-growing food franchises in American history. However, the concerns fueling these rumors aren’t entirely baseless – franchise profitability issues, legal disputes, and signs of market saturation in some regions are real, documented challenges that deserve honest examination.
Crumbl’s Rapid Rise – The Quick Version
Crumbl was founded in 2017 by cousins Jason McGowan and Sawyer Hemsley in Logan, Utah. Its formula was deceptively simple: large, premium-priced cookies with a rotating weekly menu, heavy TikTok and Instagram presence, and a distinctive pink box. The brand leaned fully into social media virality at exactly the right cultural moment.
By 2022 it had surpassed 500 locations. By 2024, over 1,000. The franchise fee model made it relatively accessible to new operators, and the brand’s online following – millions across platforms – provided built-in marketing. For a while, it seemed like it could do no wrong.
Current Status: Is Crumbl Closing?
| Fact | Details |
|---|---|
| Total US locations (2025) | 1,000+ |
| Founded | 2017, Logan, Utah |
| Business model | Franchise (franchisee-owned locations) |
| Social media following | Millions across TikTok, Instagram |
| Recent corporate closures? | No announced corporate-level closures |
| Individual franchise closures? | Yes – some underperforming locations have closed |
| Ongoing expansion? | Yes – new franchises still being sold and opened |
| Publicly traded? | No – private company; limited financial disclosure |
Why Are People Asking This Question?
Several real events have contributed to the closure narrative, even if none of them individually signal corporate collapse:
- Franchise location closures: Some individual Crumbl locations – particularly in oversaturated suburban markets – have quietly closed. Since Crumbl is franchised, each closure is a franchisee’s decision, not corporate’s. But customers see a closed location and assume the worst.
- The 2022 lawsuit against competitors: Crumbl filed aggressive IP lawsuits against cookie competitors (Dirty Dough, Crave Cookies) claiming trade dress infringement over their store design and box style. The legal action was widely criticized as heavy-handed and generated significant negative press.
- Franchise profitability complaints: Reports emerged from franchise owners about difficult economics – high product costs, corporate-mandated pricing, and weekly menu changes that require constant inventory adjustments. Some franchisees have spoken openly about struggling to turn a profit.
- Social media backlash: As Crumbl’s following grew, so did the critics. The rotating menu has been polarizing – some customers love the novelty; others find it frustrating when their favorites aren’t available. Negative review cycles on TikTok have real reach.
- General premium food fatigue: After years of premium treat culture (elaborate bubble tea, viral croissants, specialty coffee), some consumers have pulled back on discretionary food spending amid inflation.
The Franchise Model: Real Concerns Behind the Noise
Crumbl’s franchise structure is both its greatest strength and its most legitimate vulnerability. The brand’s explosive growth was possible because franchisees funded the expansion – Crumbl corporate didn’t have to open and staff every location.
But that structure also means the brand’s reputation depends on hundreds of independent operators, not all of whom are well-capitalized or experienced in food service. A franchisee who cuts corners, hires poorly, or simply opened in a location without enough demand reflects on the entire brand – even though corporate has limited direct control.
The weekly rotating menu is particularly challenging for franchisees. It requires constant new ingredient procurement, staff retraining, and marketing updates – all overhead that eats into margins. Some franchise owners have said publicly that the model works better in high-traffic urban areas than in smaller suburban markets where the core customer base isn’t large enough to sustain it.
Crumbl vs. the Cookie Competition
| Brand | Approx. US Locations | Business Model | Current Status |
|---|---|---|---|
| Crumbl Cookies | 1,000+ | Franchise | Active, expanding |
| Insomnia Cookies | 300+ | Mix of corporate & franchise | Active, expanding (Focus Brands) |
| Dirty Dough | 100+ | Franchise | Active – was sued by Crumbl |
| Crave Cookies | 50+ | Franchise | Active – also sued by Crumbl |
| Last Crumb | Online-only / pop-ups | DTC luxury | Active, niche market |
| Great American Cookies | 400+ | Franchise (mall-based) | Stable |
What the Numbers Suggest
Because Crumbl is a private company, they don’t publish detailed financials. However, there are meaningful signals worth noting:
- Franchise sales are still being actively marketed – companies approaching collapse typically halt new franchise sales
- The brand continues to invest in app development, digital ordering, and loyalty programs
- Social media engagement, while more polarized than before, remains enormous
- No major supply chain partners, vendors, or corporate employees have raised red flags publicly
What’s Next for Crumbl?
The most likely trajectory for Crumbl isn’t collapse – it’s normalization. The hypergrowth phase is almost certainly over. The brand will likely see some natural attrition of underperforming franchise locations, slower new location growth, and increasing pressure to improve the economics for franchisees.
That’s not ‘going out of business.’ It’s what happens to nearly every fast-growth brand when the initial wave of novelty levels out. McDonald’s, Subway, and Dunkin’ all went through similar cycles – periods of breakneck expansion followed by consolidation and reform.
Crumbl isn’t dying. It’s maturing. And for fans of the pink box, that means the brand will likely be around for years – just perhaps with fewer locations in markets that couldn’t sustain the initial hype.
