TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

Private equity firm TSG Consumer Partners has taken a minority stake in Crumbl, the rapidly expanding cookie and dessert chain, according to a recent report from Bloomberg. The investment, made in the form of preferred equity, signals growing interest from institutional investors in high-performing franchise concepts, especially those with strong brand identity and social media momentum.

Crumbl’s appeal to investors is clear. Founded in 2017 by Jason McGowan and Sawyer Hemsley, the brand has scaled at an extraordinary pace, reaching over 1,000 stores across the U.S., Puerto Rico and Canada in just eight years. Crumbl sells over 1 million desserts per day and offers a rotating menu that has made it a viral sensation on platforms like TikTok — factors that contribute to its aggressive franchising success. The company sells franchise rights to its stores and has built a loyal customer base that fuels demand at both new and existing locations.

The deal with TSG comes as Crumbl’s owners continue to explore a potential sale that could value the company at nearly $2 billion, including debt. The valuation is based on reported EBITDA nearing $150 million, highlighting the brand’s profitability and operational scalability — two major signals that would appeal to both franchisees and franchisors evaluating long-term growth potential.

In addition to TSG’s equity investment, Bloomberg reports that Crumbl is in talks with Blackstone Inc. and Golub Capital for a $500 million unitranche loan. This form of private credit financing would provide Crumbl with immediate capital to support expansion and infrastructure, likely fueling additional franchise development, marketing, and supply chain upgrades.

The involvement of major players like TSG, Blackstone and Golub suggests a broader trend of institutional confidence in franchised brands with unique consumer appeal and proven unit economics. For current and prospective Crumbl franchisees, the partnership could lead to enhanced corporate support, increased brand exposure, and accelerated growth in untapped markets. For franchisors across industries, Crumbl’s ability to attract this level of investment underscores the value of pairing a simple product with strong digital engagement and operational consistency.

Crumbl joins a growing list of dessert-focused brands drawing attention from private equity. As Bloomberg notes, Krispy Kreme sold a majority stake in Insomnia Cookies to Verlinvest and Mistral Equity Partners in 2024, while Stripes has backed Levain Bakery since 2018. These moves indicate an increasingly competitive landscape where investor backing could be a differentiator in the race for franchise territory and consumer mindshare.

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