As of 2026, Crumbl is not going out of business. The dessert chain remains a large operating franchise network with more than 1,100 locations, while its 2026 expansion programme continues despite further closures at individual stores.
The picture is more mixed than simple rapid growth, however. Crumbl finished 2025 with 1,101 locations after adding a net 42 stores, and its 2026 franchise disclosure information projected 99 additional franchise openings before accounting for possible closures.
The company is therefore still expanding, but at a considerably more measured pace than during its earlier growth boom.
Key takeaways:
- Crumbl operates over 1,100 stores in the US and Canada
- Some franchise locations have closed due to performance issues
- The company secured major private equity backing
- Corporate layoffs and restructuring occurred during rapid growth
- Expansion in the US and Canada is planned for 2026
This article examines verified reports, financial data, and executive statements to clarify the real situation.
Is Crumbl Going Out of Business in 2026?
Crumbl is not going out of business in 2026, but the company has entered an important leadership transition. In May 2026, co-founders Jason McGowan and Sawyer Hemsley announced plans to move away from their day-to-day operating roles as the business searches for new senior leadership.
McGowan is set to step down as Chief Executive Officer once a replacement is appointed, while Hemsley will leave his Chief Brand Officer position. Chief Technology Officer Bryce Redd was also included in the transition.
The founders said they would remain involved through Crumbl’s board, with McGowan continuing as chairman, making this a management handover rather than an exit from or closure of the company.
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:
- Viral TikTok posts suggesting a nationwide closure
- Reports of corporate layoffs affecting around 10 percent of headquarters staff
- Media coverage highlighting revenue declines at some stores
- Public criticism regarding pricing and calorie counts
- Visible franchise closures in specific regions
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 continues to close individual underperforming locations while opening new ones elsewhere. The company finished 2025 with 1,101 locations, representing a net increase of 42 stores during the year, compared with net growth of 87 locations in 2024 and 281 in 2023.
Closures have continued during 2026. For example, the Milford, Connecticut store closed on 13 June 2026, joining other recently reported closures in states including North Carolina, Maryland, Texas, California and Florida.
However, those shutdowns are occurring alongside new development rather than as part of a nationwide closure programme. Crumbl projected 99 franchise openings for 2026, although that projection does not deduct stores that may subsequently close.
This means the most accurate description is that Crumbl is still expanding while simultaneously removing weaker locations from its network.
Below is a simplified overview based on reported figures:
| Year | Locations / Growth | What Happened |
|---|---|---|
| 2021 | 326 locations | Rapid expansion phase |
| 2023 | Net +281 | Expansion remained extremely strong |
| 2024 | Net +87 | Growth slowed significantly |
| 2025 | 1,101 locations, net +42 | Expansion continued at a slower rate |
| 2026 | 99 franchise openings projected | New openings alongside selective closures |
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?
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.
The latest figures provide a clearer picture of the financial pressure facing Crumbl. According to reporting based on the company’s 2026 franchise disclosure document, average unit volume fell by approximately 16 percent in 2025, dropping from around $1.35 million in 2024 to about $1.14 million.
Despite that decline, Crumbl generated approximately $1.3 billion in system-wide sales during 2025 and continued to operate more than 1,100 locations. This suggests that the company remains a substantial business even though average individual-store sales have weakened.
Another important change is that Crumbl stopped including store profitability figures in its latest franchise disclosure information. As a result, recent revenue and unit-volume data provide a clearer public measure of performance than claims about current average franchise profits.
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:
- Rising ingredient and packaging costs
- High franchise fees compared to industry standards
- Frequent menu changes increase operational strain
- Labour pressure in stores staffed largely by younger workers
- Cost-cutting measures, such as ingredient substitutions
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?
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:
- More than 1,100 operational US locations
- Over 25 Canadian stores
- Plans for further North American expansion
- Continued headquarters upgrade
- Menu diversification into broader dessert categories
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?
Crumbl still does not have a confirmed official UK bakery as of August 2026, so British customers should not interpret unofficial pop-ups or imported products as evidence of a formal UK launch.
However, the company has taken another significant step in its international expansion. Crumbl announced its first Mexico location in the Roma Norte neighbourhood of Mexico City during summer 2026, and the location is now listed on Crumbl’s official Mexican store finder at 225 Durango.
This development strengthens the argument that Crumbl is expanding internationally rather than retreating from the market. Canada remains an established international market, while Mexico has now extended the company’s official footprint further beyond the United States.
For the UK, the situation remains less certain. There is currently no confirmed permanent UK store or announced British opening date. It is therefore better to describe the UK as a possible future expansion market rather than suggesting that a launch is already being prepared.
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.
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