No, Crumbl is not going out of business. Despite viral social media rumours and isolated franchise closures, the company continues to operate more than 1,100 locations across the United States and Canada and has confirmed further expansion in 2026.

Recent headlines about store shutdowns reflect underperforming individual franchises rather than a company-wide collapse. Leadership has publicly addressed speculation, stating the brand is upgrading operations and moving headquarters, not shutting down.

Key takeaways:

This article examines verified reports, financial data, and executive statements to clarify the real situation.

Is Crumbl Going Out of Business in 2026?

Is Crumbl Going Out of Business in 2026

Crumbl is not going out of business in 2026. Company leadership has publicly rejected claims of a shutdown and confirmed continued expansion.

Cofounder Sawyer Hemsley addressed speculation directly on TikTok, explaining that the business is relocating its headquarters and upgrading facilities rather than closing operations. He stated the company is preparing for its next phase of growth.

The confusion stems from restructuring decisions and selective store closures, which some online users interpreted as signs of collapse.

However, official statements indicate the opposite direction. Rhonda Bromley, Vice President of Public Relations, confirmed that new stores will open across the United States and Canada in 2026.

While operational adjustments and workforce reductions have occurred, these actions reflect internal recalibration after rapid expansion. The available evidence shows that Crumbl is restructuring and refining its model, not winding down its business.

Why Did Rumours About Crumbl Going Out of Business Start?

Rumours that Crumbl was going out of business began circulating after social media posts claimed the bakery chain was closing permanently. The speculation intensified when certain franchise locations in states such as Florida, Georgia, and California shut their doors.

Several factors contributed to the narrative:

Crumbl’s fast growth created high visibility, which amplified negative developments. When underperforming stores closed, online audiences often assumed the entire brand was collapsing.

At the same time, reports showed average store revenue dropping significantly between 2022 and 2023, adding fuel to speculation.

However, franchise closures are not the same as a corporate shutdown. The company clarified that it remains operational and continues to expand, even as it addresses profitability gaps and restructures parts of its organisation.

How Many Crumbl Stores Have Actually Closed?

Crumbl has closed a limited number of franchise locations, but the company still operates more than 1,100 stores in the United States and over 25 in Canada.

At the end of 2021, the brand had 326 locations and had not closed any stores, reflecting extraordinary early growth.

Following rapid expansion across 2022 and 2023, some locations began underperforming. As a result, select franchises shut down due to market conditions, high operating costs, or lower than expected demand. These closures were isolated rather than systemic.

Below is a simplified overview based on reported figures:

YearTotal LocationsClosures ReportedExpansion Plans
20213260Rapid Expansion
20241,100+Select LocationsRestructuring
2026GrowingLimitedUS & Canada Expansion

The data shows continued growth despite selective closures. The presence of store shutdowns does not indicate a company-wide collapse but reflects adjustments after aggressive franchise development.

Is Crumbl Financially Struggling Behind the Scenes?

Is Crumbl Financially Struggling Behind the Scenes

Although Crumbl is not going out of business, financial pressures have emerged behind the scenes. Rapid growth transformed the company from a single Utah store into a multibillion-dollar franchise network in less than a decade.

According to food research firm Technomic, Crumbl generated approximately 1.2 billion dollars in sales by 2024.

However, expansion brought complexity. Reports indicated that average store revenue declined by 37 percent between 2022 and 2023.

The performance gap between high-earning and struggling locations widened considerably. While some stores remained highly profitable, others operated on thin margins.

Corporate restructuring followed these developments. The company laid off roughly 10 percent of its 300-person corporate workforce. The Chief Operating Officer role was eliminated during this period.

Key operational challenges included:

Crumbl also expanded its menu beyond cookies to include cakes, brownies, puddings, and pies in an effort to counter consumer fatigue and drive revenue growth.

Are Franchise Owners Facing Financial Pressure?

Franchisees face significant financial commitments. Opening a Crumbl location can cost between 460,000 and 1.3 million dollars in startup expenses. Operators must also pay an 8 percent royalty fee on sales, which is higher than many quick service chains.

Reports suggest that while average net profits across all stores appeared strong, median profits were considerably lower. This indicates that top-performing stores skew overall figures, while many locations generate modest returns.

Some franchise owners reported unpredictable weekly demand due to rotating menus and limited-edition launches.

Sudden surges in popularity for specific products created staffing and inventory challenges. In lower-performing markets, even a single unexpected expense could push operations into a loss.

These pressures explain why certain franchises closed, even though the parent company continues to expand.

Has Private Equity Investment Helped or Hurt Crumbl?

Crumbl secured significant private equity backing, selling a minority stake to TSG Consumer Partners and obtaining a 500 million dollar private credit line from Blackstone and Golub Capital.

Leadership framed the investment as a strategic move to accelerate expansion and gain experienced guidance.

Chief Executive Officer Jason McGowan noted that the company became a multibillion-dollar business before bringing in investors. The capital injection provided liquidity and supported further growth plans, including international expansion.

However, critics argue that rapid scaling combined with investor expectations can intensify pressure on franchisees. Expansion into new markets, workforce reductions, and operational adjustments occurred around the same period as the investment.

The funding has strengthened Crumbl’s balance sheet, yet it has also heightened scrutiny over performance consistency and long-term sustainability.

Is Crumbl Still Expanding in 2026?

Is Crumbl Still Expanding in 2026

Yes, Crumbl is still expanding in 2026. Company representatives confirmed that additional stores will open in both the United States and Canada.

Current growth indicators include:

The brand also shortened its name from Crumbl Cookies to Crumbl, signalling a shift from a cookie-only identity to a wider dessert offering. Leadership stated that innovation would continue, with new product launches designed to maintain consumer interest.

Despite store closures in certain regions, the overall footprint continues to grow. Expansion plans suggest confidence in long term demand for the brand’s rotating menu model and strong social media presence.

What Do Store Closures Really Mean for the Brand?

Store closures do not automatically signal corporate failure. In franchise models, underperforming locations sometimes shut down due to local market conditions, rising costs, or management challenges.

Crumbl’s rapid expansion created uneven performance across markets. While flagship stores generated strong profits, others struggled with thinner margins and operational complexity. Closing weaker locations can be part of strategic recalibration.

The broader quick-service food industry has faced economic headwinds, including higher supply costs and cautious consumer spending. Within that context, selective closures reflect adjustment rather than collapse.

For Crumbl, the closures indicate a shift from aggressive growth to more measured optimisation. The brand remains operational, financially backed, and actively planning new openings.

Could Crumbl Expand to the UK?

Could Crumbl Expand to the UK

Crumbl does not currently operate in the United Kingdom, but international growth has been discussed publicly. The company has already expanded into Canada and announced moves into Australia, demonstrating global ambition.

Private equity backing and a strong digital brand presence could support entry into new markets. The UK dessert sector is competitive, yet consumer interest in American-style bakery concepts remains strong.

If expansion follows the same model used in North America, franchise opportunities could emerge in major British cities. However, no official launch date has been confirmed.

For UK audiences searching for Crumbl going out of business, the more relevant takeaway is that the brand appears focused on growth rather than retreat.

So, Is Crumbl Going Out of Business or Just Restructuring?

Crumbl is restructuring, not going out of business. Evidence shows a company adjusting after rapid expansion rather than preparing for closure.

The brand continues to operate more than 1,100 locations and has confirmed additional openings in 2026. While some franchise stores have closed, leadership maintains that growth remains a priority.

Corporate layoffs, financial fluctuations, and operational refinements have contributed to speculation. Yet these developments align more closely with recalibration than collapse.

In summary, the question of whether Crumbl is going out of business can be answered clearly. Based on verified reports and executive statements, the company is restructuring to stabilise performance and support future expansion.

Conclusion

Crumbl is not going out of business. The bakery chain continues to operate over 1,100 stores across North America and plans further expansion in 2026. Rumours originated from isolated franchise closures, corporate layoffs, and viral social media claims.

Financial pressures and uneven franchise performance have led to restructuring, yet significant private equity backing and confirmed growth plans indicate stability.

The company has diversified its menu, upgraded its headquarters, and refined its operations in response to rapid scaling.

For UK readers analysing the situation, the evidence points to adjustment rather than collapse. Crumbl remains active, financially supported, and positioned for continued development rather than shutdown.

FAQs

Is Crumbl bankrupt?

No, there is no evidence that Crumbl has filed for bankruptcy. The company continues to operate and expand across North America.

Why are some Crumbl locations shutting down?

Certain franchise stores closed due to underperformance and rising costs. These closures do not represent a company wide shutdown.

How many Crumbl stores are currently open?

Crumbl operates more than 1,100 stores in the United States and over 25 in Canada. Additional openings are planned for 2026.

Who owns Crumbl Cookies?

Crumbl was founded by Jason McGowan and Sawyer Hemsley. The company also has minority investment from private equity firms.

Is Crumbl profitable?

The company has reported strong overall sales, but profitability varies widely between locations. Some stores perform significantly better than others.

Has Crumbl expanded outside the United States?

Yes, Crumbl has expanded into Canada and announced plans for Australia. International growth remains part of its strategy.

Will Crumbl open in the UK?

There is no confirmed UK launch date at present. However, international expansion suggests it could consider the British market in the future.