Franchise Evaluator™: Bang Cookies

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

The gourmet cookie industry market size is anticipated to grow to $18.77 billion by 2029. This significant growth is due to several factors. Bakers are incorporating healthier, functional ingredients to attract a wider health-conscious consumer base. Increased consumer spending power and a rise in gourmet cookie establishments are also driving market expansion. The shift towards healthier alternatives is boosting the healthy cookies segment. Additionally, rapid urbanization and strategic marketing are enhancing cookie consumption. However, high manufacturing costs, leading to higher prices, could potentially limit market growth, particularly in underdeveloped areas where cost sensitivity may be an issue. Source: Mordor Intelligence

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

The industry trends highlight an increasing demand for healthy cookies, with a global shift towards gluten-free options driven by rising health consciousness. Key players are launching healthier options with natural flavors, such as oatmeal raisin and snickerdoodle cookies. The growing popularity of clean-labeled cookies is expected to reshape market dynamics, with more bakeries seeking Non-GMO Project certification.  Rising concerns over gluten and lactose intolerance are fueling demand for gluten-free and dairy-free cookies. Additionally, increasing incomes and a younger population inclined toward purchasing cookies are driving market growth in these regions. Major companies in the cookie market are focusing on flavor, format, and packaging innovation to maintain their competitive edge regionally.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Bang Cookies is a company that prioritizes both size and sustainability in its product offerings. Their operations are easy to manage and require a small footprint, making them efficient and adaptable to various locations. The company has transformed the traditional cookie by creating large, soft-baked, organic versions that have gained widespread popularity. These cookies not only provide an exceptional taste experience but also align with environmental values, as they are made with organic ingredients. This combination of quality, size, and sustainability drives the success and appeal of Bang Cookies’ products.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

The gourmet dessert and treat industry is highly competitive, with many businesses offering cookies and baked goods. You’ll be up against both local shops and regional or national franchise chains. These competitors sell a variety of baked goods, including cookies and brownies. The market for these products and services is not seasonal but remains very competitive throughout the year.

We categorize the competitive climate as mid-high competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

Many states and local jurisdictions have laws, rules, and regulations that may affect your Bang Cookies location. These include regulations on construction, design, and maintenance; zoning; health and sanitation for operations and employee practices; employee health and safety; emergency preparedness; waste management; product labeling; and accessibility for the disabled (including requirements from the Americans with Disabilities Act of 1990 and similar state laws). You should research how these regulations apply to the area where you plan to locate your shop. It is also advisable to consult with your attorney about these and other local laws, rules, and regulations that may impact your shop’s operation.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

Bang Cookies is currently franchising through a partnership with Oakscale Franchise Partners. The franchise development company owns the top franchise leads generator in the industry and has access to franchise consumer data. The organization’s expert developers and marketers are there to support business owners’ growth, and these entrepreneurs benefit from Oakscale’s technology and responsible approach to franchise growth.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

George Kuan established Bang Cookies in 2016. Originally selling organic cookies at farmers markets, he quickly opened two locations and a factory in New Jersey. Co-owner and longtime friend Michael Smilovitch took the brand to new heights by reaching out to TikTok sensation Corey Bonalewicz, who tried a Bang cookie in one of his videos and was hooked immediately. The social media influencer is now a co-owner of the cookie franchise. Bang Cookies began franchising through a partnership with Oakscale Franchise Partners, a franchise development company. The organization is led by CEO Rob Huntington, co-founder and CDO Joshua Kovacs, CMO Paul Omps, and COO Nicole Smith.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

Franchisees of Bang Cookies are required to meet several key expectations before opening their shop. They must complete initial training, which includes 60 hours of instruction divided into 23 hours of classroom learning and 37 hours of on-the-job training. This training covers an introduction to Bang Cookies, systems and framework, baking and production processes, retail operations, and management practices. Additionally, franchisees must obtain the necessary licenses and authorizations from state and regulatory agencies, provide written proof of required insurance, and secure an approved shop location. These requirements ensure that each franchisee is well-prepared and compliant with Bang Cookies’ operational standards.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

The financial health of the Bang Cookies franchise, as reflected in its 2023 performance, reveals a robust yet varied financial profile across different locations. The Jersey City (Downtown) outlet, occupying 275 square feet, generated a gross revenue of $700,343.56, with retail sales contributing the majority. The prime costs, including Cost of Goods Sold (COGS) and payroll, amounted to $302,244.08, representing 43.16% of the gross revenue. After accounting for franchisee expenses such as the 6% royalty fee and the 2% brand fund contribution, the net income before rent and operational expenses stood at $342,072.00, or 48.84% of gross revenue.

We categorize the Financial Health as Sound.