Franchise Deep Dive: Great American Cookies Franchise Costs, Fees, Profit and Data

Great American Cookies is a gourmet cookie franchise that was founded on the strength of an old family chocolate chip cookie recipe. The franchise is known for its signature Cookie Cakes, trademark flavors and menu of delectable products baked fresh in store.

It is owned by FAT Brands, which operates notable restaurant brands such as Round Table Pizza, Fatburger, Elevation Burger and Johnny Rockets.

Great American Cookies was founded by Michael J. Coles and Arthur Karp in 1977 with just a $4,000 investment each. Their first store opened in Atlanta's Perimeter Mall. Quickly becoming successful, the brand began franchising the following year.

By 1985, the company reached $100 million in annual revenue, making it the largest retail cookie chain in the U.S. The company was sold to Mrs. Fields Famous Brands in 1998 and later acquired by NexCen Brands Inc. in 2008. Since 2010, it has been owned by Global Franchise Group, which was acquired by FAT Brands in 2021.

Growth and expansion

In 2023, the franchise achieved a milestone of 400 locations in 31 states and five countries. In the two years preceding the milestone, the brand experienced accelerated growth, opening 73 new locations and adding an Alaska location.

The brand has also grown via a successful co-branding model with sister business Marble Slam Creamery. Launched in 2009, there are now more than 179 co-branded locations around the world. Additionally, in May 2022, FAT Brands acquired Nestlé Toll House Café by Chip — with at least 50 locations converted to Great American Cookies.

The core of Great American Cookies’ business revolves around offering a variety of baked goods, such as the Original Cookie Cake, fresh-baked cookies in different flavors and brownies. The brand emphasizes providing treats that are freshly made and use high-quality ingredients.

As a part of the largest cookie concept in the country, Great American Cookie franchisees benefit from the brand’s strong customer recognition. In addition, the new co-branded Great American Cookies and Marble Slab Creamery integrated concept offers double brand exposure and customer appeal in one space.

Business model and support

The business model is designed to provide comprehensive support for franchisees, including an extensive training program that equips new franchisees with the necessary skills to run a successful bakery. The program, comprising 32 hours of on-the-job training and six hours of classroom learning, covers various aspects, including the preparation of signature cookies, inventory management, customer service, bakery operations and staff management.

In addition to training, the brand offers guidance on real estate and construction, assisting franchisees in identifying viable business locations and providing expertise in bakery construction, design and branding. The real estate team also aids in lease agreements and negotiations.

Franchisees are required to be actively involved in decision-making and the day-to-day operations of their bakeries. Absentee ownership is not permitted. Franchisees must commit to full-time operation, according to the franchisor's set operating hours.

Whether you want to open your cookie franchise in a mall, at an airport, a college campus or anywhere in between, Great American Cookies has franchise opportunities in competitive markets across the country.

The estimated initial investment to open Great American Cookies ranges from $196,000 to $412,000, according to Entrepreneur. There is also a 6% of net sales royalty.