is crumbl going out of business is a rumor that continues to spread online, but Crumbl Cookies is not going out of business. As of 2025, it remains one of the fastest-growing cookie franchises in the United States, with over 1,000 locations across all 50 states. The rumors come from lawsuits, franchise owner complaints, and social media speculation, not from any credible threat to the company’s existence.
That said, Crumbl has had a genuinely rocky few years behind the scenes. Legal battles, disgruntled franchise owners, and questions about the brand’s aggressive expansion have fueled the chatter. Here’s the full picture.
| Bottom Line: Crumbl is NOT closing. It’s still growing – but it’s navigating legal and franchise challenges that have understandably raised eyebrows. |
What Is Crumbl Cookies?
Crumbl was founded in 2017 by cousins Jason McGowan and Sawyer Hemsley in Logan, Utah. It grew from a single store to a national franchise in just a few years – one of the fastest retail expansions in food history. The brand’s signature move: a rotating weekly menu of 4-6 specialty cookies, almost exclusively marketed through TikTok and Instagram.
| Stat | Figure |
|---|---|
| Founded | 2017 |
| Franchise locations (2025) | 1,000+ |
| States with Crumbl locations | All 50 US states |
| Social media followers (combined) | 15M+ |
| Franchise fee | ~$25,000 |
| Estimated total investment per location | $228,000 – $574,000 |
Where Did the ‘Going Out of Business’ Rumor Come From?
The speculation has a few distinct sources – and it’s worth understanding each one:
1. The Lawsuit Against Competitors
In 2022, Crumbl made headlines by filing a lawsuit against competitor cookie companies – including Dirty Dough and Crave Cookies – alleging trade dress infringement (copying their pink box, app design, and store layout). The lawsuits generated significant backlash.
Many consumers saw it as a big brand trying to bully smaller competitors. The negative press led some people to assume Crumbl was in crisis. It wasn’t – it was actually playing offense, trying to protect its brand identity.
2. Franchise Owner Complaints
A number of Crumbl franchise owners have publicly expressed frustration with the corporate model. Common grievances include:
- High royalty fees eating into already-thin cookie profit margins
- Mandatory menu changes every week, requiring constant retraining and ingredient turnover
- Corporate oversight that some describe as micromanagement
- Rapid expansion leading to cannibalization – new Crumbl locations opening close to existing ones
These are real operational concerns. But they reflect the typical friction of a fast-scaling franchise – not a company on the verge of collapse.
3. Social Media Amplification
A handful of viral TikTok and Facebook posts from unhappy customers or franchise owners spread widely among people who already knew the brand. The format – ‘Is Crumbl going out of business??’ – gets clicks, even when the answer is no.
Is Crumbl Still Growing?
| Year | Estimated Locations | Notable Development |
|---|---|---|
| 2018 | ~10 | First franchise locations opened |
| 2019 | ~140 | Rapid franchise expansion begins |
| 2020 | ~200 | COVID-era demand for comfort food boosts sales |
| 2021 | ~500 | Expansion accelerates; brand goes viral on TikTok |
| 2022 | ~700 | Lawsuits filed; negative press cycle begins |
| 2023 | ~900 | Continued growth despite controversy |
| 2024-2025 | 1,000+ | International expansion explored |
What Does This Mean for Customers?
If you’re a regular Crumbl customer, nothing changes. Your local store is almost certainly not closing. The rotating weekly menu continues. The pink boxes keep coming.
If you’re a fan who was worried: the brand you like is still operating at full capacity. You can check crumblcookies.com for your nearest location and the current week’s menu.
What Does This Mean for Potential Franchise Investors?
This is where more caution is warranted. Crumbl’s franchise model has real profit potential, but it also comes with higher-than-average complexity and ongoing franchise friction. Before investing:
- Read the FDD (Franchise Disclosure Document) carefully – especially the litigation history section.
- Talk to existing franchise owners independently, not ones referred by corporate.
- Analyze whether the local market is already saturated – many areas now have multiple Crumbl locations nearby.
- Understand the weekly menu rotation’s operational demands before committing.
Crumbl’s real challenge isn’t survival – it’s maturity. The brand is transitioning from hypergrowth startup to established franchise, and that transition is always messy.
