Crumbl Has Too Many Stores. Every One of Them Has a Loan Behind It.
The Food Institute asked industry experts why Crumbl is closing stores and losing sales. Valcor CEO David Sussman skipped the cookies and went straight to the people who paid for the ovens.
The Food Institute ran a piece today on Crumbl, the pink-box cookie chain that owned TikTok a few years ago and is now closing stores. Most of the experts it interviewed talked about the menu. David Sussman talked about the loans Crumbl franchisees are still carrying.
Crumbl locations closed so far this year, according to a KUTV report cited by The Food Institute. The same report put August sales 70% below where they were two years earlier.
📊 Why Crumbl Stores Are Closing
Crumbl opened in 2017 and built its following on a weekly rotating menu that customers treated as an event. Social media did the marketing for free, and customers paid close to $5 a cookie for the privilege.
Novelty has a shelf life. The other experts in the article pointed to the excitement wearing off and to a price that sits squarely in the discretionary column, which is the first place households cut when grocery bills climb.
🏪 Behind Every Pink Box Is a Personal Guarantee
Crumbl is now almost entirely franchised. Sussman told The Food Institute that each store represents an owner who put in somewhere between $850,000 and $1.5 million, usually borrowed, usually backed by a personal guarantee.
That changes the math. When an average location’s sales fall by more than a third over three years, the brand has a marketing problem and its franchisees have a debt problem. Corporate can close a store and write it off. The franchisee still owes the bank.
The expansion made it worse. Crumbl kept opening stores during the boom, and customers did not multiply to match. The same buyers are now split across more counters.
“Stop adding stores until the existing ones are healthy. Every new location near a struggling one makes both weaker.”
David Sussman, CEO of Valcor, in The Food Institute
⚠️ Why Falling Sales Hit Crumbl Franchisees Harder
In most franchise systems, royalties and marketing fees are a percentage of sales. They shrink when sales shrink. The loan payment and the lease stay exactly where they were. A unit that covered its debt service comfortably at peak volume can go cash-negative long before anyone outside the store finds out.
The personal guarantee is the part owners tend to forget they signed. Once the store can no longer carry the note, the lender looks past the business to the house and the savings account behind it. Closing the doors does not close the loan. We covered how to cut personal credit ties to a failing business in an earlier piece.
🔑 If You Own a Struggling Franchise Unit
- Model the store on current sales. Forget last year’s numbers and the franchisor’s projections. If today’s revenue does not cover debt service and rent, you already have your answer.
- Call the lender before you miss a payment. Options narrow fast after a default. If you are unsure how close you are, run through the 8 signs debt is starting to run your business.
- Read your loan guarantee and your lease guarantee. Know exactly what you have pledged and to whom.
- Get an independent advisor in the room early. Otherwise a creditor or the franchisor will set the timeline for you.
If your franchise unit’s sales no longer cover the note, Valcor can mediate with your lender and restructure the debt before a default narrows your options.
Request a Confidential Consultation →💬 How Valcor Helps Franchise Owners
- Business Restructuring: Reorganize obligations so monthly cash demands match what the store can actually sustain.
- Commercial Debt Mediation: Work directly with lenders and creditors to reset terms and create breathing room.
- Capital Acquisition: Source non-bank funding and replacement financing when traditional lenders pull back or fall short.
- Cash-Flow and Creditor Strategies: Improve controls and negotiate terms that hold up over time.
🤝 For Professionals Who Serve Franchise Owners
When a franchise unit gets into trouble, the owner calls the CPA, attorney, or broker they already trust. Valcor licensees add restructuring, debt mediation, and lending to an existing practice, with Valcor’s methodology and back-office support behind them. And unlike the model this story is about, a Valcor license carries no franchise fees or royalties.
Learn about becoming a Valcor licensee →
❓ Crumbl Franchise Questions
Why are Crumbl stores closing?
A KUTV report cited by The Food Institute counted 57 Crumbl closures this year, with August sales 70% below the level of two years earlier. Industry experts point to fading novelty and a premium price that households drop when budgets tighten. David Sussman adds that the chain opened so many locations that the same customers are now split across too many stores.
How much do Crumbl franchisees invest?
According to David Sussman in The Food Institute, each Crumbl store represents an owner investment of roughly $850,000 to $1.5 million, typically financed with a loan and backed by a personal guarantee.
What happens to a personal guarantee if a franchise store closes?
The guarantee survives the closure. If the business cannot repay the loan, the lender can pursue the owner personally for the remaining balance, and a personally guaranteed lease works the same way. Owners have the most room to negotiate before a default, so the time to talk to the lender and an advisor is while payments are still current. Review the specific terms of any guarantee with an attorney.
David Sussman’s comments appear in “Crumbl Cookies’ Sweet Success Turns Sour,” The Food Institute, October 16, 2026. Store closure and sales figures are as reported by KUTV and cited by The Food Institute. Valcor is not affiliated with Crumbl. Valcor is not a law firm and does not render legal advice; legal and accounting work is handled by independent licensed professionals. This article is for informational purposes only.
Sales Down and the Note Unchanged?
Valcor works confidentially with franchise owners and other SMB operators to restructure debt and mediate with creditors before the situation forces your hand.