Here is the truth behind why these rumors started and what is actually happening.
1. Why the Rumor Started
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The “Headquarters” Video: A viral video showed the Crumbl sign being removed from their corporate headquarters in Utah. People panicked, assuming they were going out of business. The Truth: They simply moved to a new office building nearby because their lease was up.
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Specific Store Closures: While the company isn’t closing, some individual franchise owners have closed their stores due to low sales or high rent (e.g., locations in California, Florida, and Tennessee). When people see a local store close, they often assume the whole chain is dying.
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Slower Growth: In 2021-2023, Crumbl opened hundreds of stores a year. In 2024 and 2025, that pace has slowed drastically. This “cooling off” period is normal for fast-growing businesses, but it looks like a decline to outsiders.
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2. The Real Issues (Not a Shutdown)
Crumbl is facing challenges, but they are legal and operational, not bankruptcy-level:
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Lawsuits: In early 2025, Warner Music Group sued Crumbl for $24 million, claiming they used copyrighted music in their TikTok marketing without paying for it.
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Franchisee Struggles: Some franchise owners are reporting lower profits as the “hype” for $5 cookies fades, leading to the occasional store closure mentioned above.
3. Current Status
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Open for Business: They actively release new weekly flavors every Sunday night.
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New Partnerships: They recently launched a collaboration with Dove (soap/body wash) and are testing new desserts like cakes and pies to boost sales.
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Looking for a Buyer: Reports suggest the owners are actually trying to sell the company (possibly for around $2 billion), which is the opposite of shutting it down.
Summary:
Your local Crumbl is likely safe. If you want to be sure, check the Crumbl App to see if your specific location is still listed and taking orders.
