Crumbl Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Summary

The Crumbl franchise Disclosure Document is very transparent and they recently disclosed the sales numbers and financials for 140 of their locations that operated last year. According to their data, in the 2021 calendar year the average or median revenue was $1,687,731 with a gross profit margin of $707,912.53 and then netting a profit of $279,212.

With an initial investment of $227,666 to $567,833, you can anticipate a return net profit of $279,212 once the business expands.

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Detail

• The representation made below is an historic financial performance representation of a subset of Crumbl locations that operated continuously through all of 2020. The total number of franchised outlets that existed at the beginning of 2020 and operated continuously through 2020 was 53, which equates to approximately 37.59% of the total franchised locations that were operating at the end of 2020.

• The following data represents the average, high, median, and low 2020 calendar year financial data for such 53 Crumbl locations. The first chart shows the Total Revenue, Gross Profit, Gross Margin, Net Profit, and Net Margin (defined below) for the 2020 calendar year, and the second chart shows such metrics distilled down to the average monthly (defined below) figures compiled from such locations.

• These locations operated in several states across the United States. These locations serve the same type of goods that you will be serving. These locations are each within territories of approximately 40,000 to 100,000 people. Your location will likely face different competition, costs, customer preferences, population numbers, and other factors.

A. 2020 Calendar Year

Total Revenue

• Average: $1,274,047

• High: $2,336,578

• Median: $1,176,995

• Low: $378,990

Total Gross Profit

• Average: $626,772 (49.2%)

• High: $1,231,107

• Median: $611,729

• Low: $168,901

Total Net Profit

• Average: $319,958 (25.1%)

• High: $761,123

• Median: $302,075

• Low: $41,100

B. Average Month

Total Revenue

• Average: $106,170 (100.0%)

• High: $194,714

• Median: $98,082

• Low: $31,582

Total Gross Profit

• Average: $52,230 (49.2%)

• High: $102,592

• Median: $50,977

• Low: $14,075

Total Net Profit

• Average: $26,663 (25.1%)

• High: $63,426

• Median: $25,172

• Low: $3,425

• Out of the pool of such 53 Crumbl locations that operated continuously for the 2020 calendar year, (a) 24 locations met or surpassed the average Total Revenue, (b) 25 locations met or surpassed the average Gross Profit, and (c) 24 locations met or surpassed the average Net Profit.

• The data for the Gross Profit and Net Profit above are based on the Total Revenue for a particular column. If there are an even number of stores in the data set, the Median is the average of the two median values of Total Revenue.

• The Net Profit may include operating costs that may not be applicable for all users of these statements. These costs include officer wages, guaranteed payments, corporate benefits and perks, and other indirect costs.

• “Average Month” or “Average Monthly” refers to the respective average monthly Total Revenue, Gross Profit, Gross Margin, Net Profit, and Net Margin of all 53 Crumbl locations that operated continuously for the 2020 calendar year.

• “Gross Margin” means Gross Profit divided by Total Revenue.

• “Gross Profit” means Gross Sales minus cost of goods sold, including food goods, labor, and payroll taxes.

• “Net Profit” means Gross Profit minus all ordinary and recurring operating expenses, interest, income taxes, depreciation, and amortization.

• “Net Margin” means Net Profit divided by Total Revenue.

• “Total Revenue” means total revenue derived from the sale of goods or services less sales tax, discounts, allowances, and returns.