Cookies By Design

Item 7 in the 2025 FDD pegs initial investment at $160,000-$345,000 for a 1,200-1,400 sq ft shop in malls or strip centers, with a $30,000 franchise fee—mid-range for bakery concepts where averages hover $200K-$400K. Ongoing fees bite at 6% royalty plus up to 3% brand/ad fund, plus a $500 annual POS maintenance fee, aligning with category norms but adding up for slim-margin treats like decorated cookies and cupcakes. No Item 19 means no disclosed earnings, forcing reliance on unverified seller claims; SBA data shows just 4 loans averaging $206,000, suggesting limited financing appeal and potential cash flow hurdles without proven medians.

From 43 units in 2023 to 37 in 2024, a -14% contraction flags caution in a food category craving expansion—projected 3 new units offer mild optimism, but 1 termination and 5 transfers signal churn. Litigation notes detail former franchisees suing the predecessor for FTC Rule violations, fraud, and breach in Texas, while a bankruptcy history adds risk. For single-unit or area developers eyeing everyday retail, this shrinking 18-year system demands scrutiny: low corporate footprint (1 location) and legal baggage could mean upside for bargain hunters, but contraction plus opaque finances tilt toward pass unless you're betting on niche cookie revival.