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No, it’s not. Despite widespread speculation online, Crumbl Cookies remains a fully operational and expanding franchise in 2026.
While some stores have closed and the company has made internal adjustments, these moves reflect typical franchise strategy, not failure.
I’ve looked into the facts behind the rumours and here’s what’s really happening:
- Crumbl currently operates over 1,000 stores across the U.S. and Canada
- Recent closures are tied to underperforming franchises, not a corporate collapse
- The company has slowed its expansion to focus on sustainable growth
- Leadership has denied shutdown rumours and confirmed continued operations
- Crumbl is still launching new stores and maintaining strong customer engagement
Let’s explore what’s behind the speculation and the truth that clears it up.
What Sparked The Crumbl “Going Out Of Business” Rumours?
The confusion surrounding Crumbl’s business status didn’t arise overnight. It was a combination of social media trends, selective information, and the way people interpret local business changes that fuelled a widespread assumption that the entire franchise was in trouble.
In mid to late 2023, several Crumbl stores closed quietly across smaller towns in the U.S., and videos started appearing on TikTok with dramatic captions like “Is Crumbl shutting down?” or “Another one bites the dust.”
Many of these posts lacked context and failed to highlight that these were individual franchise locations, not company-wide closures.
Platforms like Reddit and Twitter further pushed the narrative, with users speculating about financial trouble, declining quality, or over-expansion.
This speculation became more visible when users began compiling anecdotal evidence: a closed store here, a removed location from Google Maps there, and a drop in new store announcements.
As a business blog author, I can see why these signals felt alarming. But taken individually or out of context, they mislead more than inform.
In reality, the digital conversation escalated far beyond what was happening on the ground. The moment corporate restructuring news leaked and staff changes hit LinkedIn, it gave just enough fuel for rumours to be seen as credible.
Is Crumbl Cookies Actually Shutting Down In 2026?
From everything I’ve researched and tracked, Crumbl is still in business and actively operating across North America in 2026.
In fact, its store count continues to sit above the 1,000 mark, which is impressive for a brand that only launched in 2017.
Recent openings in cities like Midland, Texas, in February 2026 prove the brand is not only active but still investing in new locations. What’s really happening is that Crumbl is transitioning from a rapid-growth phase to a more stable and sustainable business model.
The shift from hypergrowth to calculated expansion is often misinterpreted by the public. We’re conditioned to think that if something isn’t “blowing up” anymore, it must be falling apart. But in franchising and retail, this adjustment phase is essential for long-term survival.
Misunderstandings Around Corporate Changes
Much of the confusion stems from internal corporate restructuring that wasn’t clearly communicated to the public. Crumbl made staffing adjustments at their Lindon, Utah headquarters and reallocated resources to focus on product development and customer service infrastructure.
These changes sparked questions like “Why are people leaving Crumbl HQ?” or “Is Crumbl downsizing?” when in reality, these are the typical evolutions businesses make after reaching a new scale.
One industry analyst told me in a conversation,
“Crumbl is doing what every maturing franchise needs to do: move from novelty-driven growth to a structure that supports ongoing innovation.”
The Facts Behind Crumbl’s Operations
To get a clearer picture, let’s look at the actual operating status of Crumbl Cookies across the years:
| Year | Number Of Locations | Key Update |
| 2017 | 1 | First store opens in Logan, Utah |
| 2019 | 35+ | Regional U.S. growth begins |
| 2021 | 300+ | Viral presence builds momentum |
| 2023 | 850+ | Slower expansion starts |
| 2024 | 1,071 | Peak location count reported |
| 2026 | 1,000+ (estimated) | Fewer new openings, but continued stability |
This clearly shows that while growth has steadied, the company has not contracted dramatically.
Why Have Some Crumbl Locations Closed Recently?
Crumbl operates on a franchise model, meaning local business owners pay for the right to open and manage their own stores under the Crumbl brand. This model provides rapid growth but also increases variability. Some stores will naturally perform better than others depending on local competition, rent, staffing, and customer habits.
From 2023 to 2025, a number of Crumbl stores closed due to underperformance. These closures were isolated and usually based on local business decisions rather than any central command from Crumbl HQ.
Economic Factors And Regional Performance
Several economic and geographic factors influence a store’s success.
For example:
| Factor | Impact On Store Performance |
| Rent and Overhead Costs | Higher fixed costs led to early closures |
| Market Saturation | Too many nearby franchises diluted demand |
| Staffing Issues | Labour shortages in some regions hurt consistency |
| Local Demand | Smaller towns didn’t sustain high sales volume |
These are common challenges in any food franchise system and don’t necessarily reflect negatively on the overall brand.
The Slow-Down Of Expansion Since 2023
Between 2020 and 2022, Crumbl was opening multiple locations per week. This “growth sprint” phase made sense when momentum and brand buzz were at their peak. But beginning in late 2023, the company slowed its expansion rate intentionally.
This change was strategic. A senior franchise advisor told me,
“If Crumbl kept opening stores at the same rate as 2021, they’d have burned out their market within three years. It’s smart to reassess and slow the pace.”
From a business health perspective, slowing growth to evaluate operational sustainability is a mark of maturity, not instability.
What Is Crumbl’s Current Business Status In 2026?
At the time of writing, Crumbl is still classified as a privately held company headquartered in Lindon, Utah. It serves two countries, the United States and Canada, with over 1,000 open locations.
To put its current position in context, here’s a side-by-side comparison of Crumbl versus other franchise bakery brands in 2026:
| Brand | Type | Approx. Stores | Market Presence |
| Crumbl Cookies | Cookie/Bakery | 1,000+ | U.S., Canada |
| Insomnia Cookies | Cookie Delivery | 250+ | Urban U.S. |
| Great American Cookies | Bakery | 300+ | U.S. (mall locations) |
| Duck Donuts | Donuts | 100+ | Mostly U.S. East Coast |
Crumbl remains the largest and most recognisable cookie-specific franchise in North America.
The leadership team, made up of:
- Jason McGowan – CEO
- Sawyer Hemsley – CBO
- Graciela Chadwick – COO
continues to oversee operations, marketing, and brand strategy. Under their guidance, Crumbl has tightened its supply chain, digitised its order system, and revised franchise support resources.
Has Crumbl Faced Any Legal Or Operational Setbacks?
No business reaches national scale without facing growing pains. Crumbl has had its share of legal disputes, staff changes, and operational hurdles, but none of them have led to a company-wide crisis.
One of the more publicised events was a series of lawsuits in 2022 and 2023, where Crumbl took legal action against smaller cookie companies over trademark issues.
These legal actions attracted criticism online, with some suggesting Crumbl was trying to suppress competition. However, the cases were settled quietly, and Crumbl moved on with minimal brand damage.
Another challenge came in the form of operational costs. Rising ingredient prices and logistics hiccups in 2023 pushed Crumbl to revise its supplier contracts.
In response, Crumbl improved its procurement strategy and centralised production for some ingredients to reduce variation between franchise locations.
| Operational Challenge | Action Taken By Crumbl | Result |
| Staff Turnover | Improved franchisee onboarding | Increased training retention |
| High Ingredient Costs | Streamlined procurement | Reduced product cost volatility |
| Delivery Complaints | Updated tech integration | Better tracking & service |
From my perspective, these steps indicate a proactive, rather than reactive, company mindset.
What Do Customers And Franchisees Think?
Customer sentiment plays a massive role in a food brand’s survival, especially one that thrives on Instagram-worthy visuals and viral menu items.
While online reviews vary, the general tone in most large cities remains positive. Customers still rave about new weekly flavours, the size of the cookies, and the novelty of Crumbl’s rotating menu. Some criticism still appears regarding price points and perceived inconsistency between franchises.
Franchisees, on the other hand, have offered mixed feedback. Some report outstanding corporate support and profitability, while others express concern about marketing dependency and high product waste.
Crumbl’s Approach To Innovation And Marketing
Crumbl’s innovation strategy hinges on its weekly rotating menu. It’s not just a gimmick, it’s a calculated marketing engine. Each Sunday, Crumbl reveals its upcoming week’s flavours on social media, creating buzz, urgency, and customer engagement.
From a professional point of view,
“Crumbl has built a product drop culture around cookies the same way Nike has with trainers. It’s limited-time excitement that keeps customers coming back.”
That said, it also introduces complexity for franchisees. Ingredients change weekly, and preparation methods vary, which requires more intensive training and supply management.
| Strengths | Challenges |
| Weekly flavour rotation | Inconsistent quality across stores |
| Heavy social media presence | Reliance on trend momentum |
| Strong visual branding | High packaging and production costs |
Customer Loyalty And Community Impact
Despite occasional criticism, Crumbl continues to connect deeply with its customers. Many locations participate in local fundraising efforts, sponsor school events, or offer donation drives. These community connections help cement the brand’s role beyond simply being a dessert shop.
From the customer’s perspective, Crumbl isn’t just a place to grab a snack, it’s an experience. It’s this experiential aspect that helps buffer against the highs and lows of the rumour mill.
What’s The Future Outlook For Crumbl Cookies?
Looking ahead, Crumbl is poised to maintain a strong position in the dessert franchise industry, especially if it continues refining its franchise support model and balancing innovation with operational stability.
Analysts expect the company to:
- Open fewer, but more strategic locations
- Enhance digital ordering platforms for better customer experience
- Streamline back-end logistics to cut down on operational waste
- Expand its product range without overwhelming the core identity
The biggest opportunity Crumbl has lies in international expansion. With the U.S. and Canadian markets nearing saturation, many are wondering whether the UK or Australian markets could be next. So far, there’s no official statement about global launches, but it would be a logical next step if Crumbl maintains its current trajectory.
Personally,
“I believe Crumbl will continue to evolve into a household dessert brand, similar to how Krispy Kreme scaled in the early 2000s. If they can maintain brand integrity while adapting to economic shifts, they have the staying power to last another decade or longer.”
Conclusion
In my view, the rumours of Crumbl going out of business are exaggerated. Yes, some stores have closed, and yes, the company has made internal adjustments. But none of this signals a full shutdown. Crumbl remains a strong presence in the U.S. and Canadian dessert market, with a leadership team actively working to future-proof the business.
While challenges remain, particularly in franchise support and market saturation, the company shows no sign of abandoning its brand or backing down from the competitive baked-goods space.
So, to answer the original question: No, Crumbl is not going out of business. The cookies and the company are still very much in the oven.
FAQs
Why do people think Crumbl is closing down?
The main reason is social media speculation after some store closures and internal restructuring. These have been misinterpreted as signs of a full company shutdown, which isn’t accurate.
Are Crumbl Cookies franchises profitable in 2026?
Profitability varies by location, as is common in franchising. Urban, high-traffic stores generally perform well, while some rural or low-traffic sites have faced challenges.
How many Crumbl stores closed in the past two years?
While exact figures aren’t officially published, several under-performing franchises closed between 2023 and 2025. This represents a small percentage of their total footprint.
Is Crumbl Cookies expanding to the UK?
As of now, Crumbl has not announced plans to expand to the UK. The company is currently focused on operations within the United States and Canada.
Who owns Crumbl Cookies?
Crumbl remains a privately held company, founded and led by Jason McGowan (CEO) and Sawyer Hemsley (CBO). It operates under a franchise model.
Did Crumbl have layoffs or financial trouble recently?
There have been reductions in corporate staff as part of restructuring, but no evidence points to financial insolvency or collapse.
How does Crumbl stay competitive in the dessert franchise industry?
By rotating its menu weekly, using strong visual branding, and engaging heavily on platforms like TikTok, Crumbl maintains high customer engagement and brand recognition.