Insomnia Cookies is a popular bakery chain in the United States known for delivering warm cookies, baked goods, and ice cream, often catering to late-night cravings. Founded in 2003 by Jared Barnett and Seth Berkowitz while they were students at the University of Pennsylvania, the brand started by delivering cookies from a dorm room to fellow students. The first retail store opened in Syracuse, New York, in 2003. Since then, Insomnia Cookies has expanded to over 265 stores across the U.S., with additional locations in Canada and England. The company strategically places its stores near college campuses to serve students who want fresh cookies late into the night, with many stores open until 3 a.m. Insomnia Cookies is currently owned by Verlinvest and Mistral Equity Partners, after Krispy Kreme sold its majority stake in 2024.
The brand offers a variety of products including 17 types of classic cookies (with vegan options), deluxe cookies, cookie cakes, brownies, milk, ice cream, and ice cream sandwiches. Their unique selling proposition is the late-night delivery service that appeals to a niche market with limited competition.
Insomnia Cookies Franchise Cost
Opening an Insomnia Cookies location requires a significant investment. Although the company is not currently franchising new locations, estimates based on public filings suggest that the total investment to open a new store ranges between $225,000 and $505,000. This range depends on the size and location of the store, with smaller conversions costing less and larger new locations on the higher end.
Here is a breakdown of the estimated costs:
| Expenditure Type | Minimum Investment | Maximum Investment |
| Franchise Fee (estimate) | $25,000 | $40,000 |
| Real Estate/Rent (3 months) | $10,000 | $30,000 |
| Leasehold Improvements | $50,000 | $150,000 |
| Equipment | $75,000 | $125,000 |
| Initial Inventory | $10,000 | $20,000 |
| Marketing (Initial 3 months) | $10,000 | $20,000 |
| Training Expenses | $5,000 | $10,000 |
| Grand Opening Advertising | $5,000 | $15,000 |
| Insurance (First year) | $5,000 | $10,000 |
| Working Capital (3 months) | $20,000 | $50,000 |
| Additional Funds (Unforeseen) | $10,000 | $35,000 |
| Total | $225,000 | $505,000 |
These figures reflect the capital needed to cover franchise fees, rent, store build-out, equipment, inventory, marketing, and working capital.
Insomnia Cookies Franchise Conditions
Currently, Insomnia Cookies does not offer new franchise opportunities. All existing locations are corporate-owned, allowing the company to maintain control over quality and brand consistency. This corporate ownership model means there are no active franchise conditions or requirements for new franchisees at this time.
However, if franchising were to open in the future, potential franchisees would likely need to meet standard conditions typical of food franchise businesses, such as:
- Having sufficient capital for initial investment and working capital
- Experience in retail or food service management
Commitment to operating late-night hours, as most stores are open from 10 a.m. to 3 a.m.
- Ability to maintain high standards of quality and customer service
- Compliance with brand guidelines and operational procedures
Since Insomnia Cookies targets college towns and urban areas, franchisees would also need to secure prime retail locations near campuses or high-traffic neighborhoods.
Insomnia Cookies Franchise Process
Although Insomnia Cookies is not currently franchising, a typical franchise process for a brand like this would involve the following steps:
Initial Inquiry and Application: Prospective franchisees submit an inquiry or application expressing interest.
Disclosure and Information Review: The franchisor provides a Franchise Disclosure Document (FDD) detailing fees, obligations, and financial performance.
Financial Qualification: The candidate demonstrates financial capability to invest and sustain operations.
Interview and Evaluation: Meetings with franchisor representatives to assess fit and commitment.
Site Selection and Approval: Identifying and securing a suitable location with franchisor approval.
Training: Comprehensive training on operations, marketing, and customer service.
Store Build-Out: Leasehold improvements and equipment installation.
Grand Opening: Marketing and launch of the new store.
Ongoing Support: Continuous operational support, marketing, and quality control from the franchisor.
Since Insomnia Cookies operates corporate-owned stores, this process is hypothetical but aligns with standard franchise practices in the food industry.
Insomnia Cookies Franchise Profit
Insomnia Cookies has demonstrated strong financial performance with an average unit volume (AUV) of approximately $850,000 per store. This reflects the brand’s strong consumer demand, especially in college towns and urban areas where late-night snacking is popular.
Estimated operating profit margins are around 15%, meaning a typical location could generate an operating profit of about $128,000 annually. Profitability is driven by:
- Unique market niche of late-night cookie delivery
- High-quality, diverse product offerings including cookies, brownies, and ice cream
- Strategic store locations near universities and urban centers
- Strong brand recognition and marketing efforts
- Delivery and takeout convenience
Operational costs to consider include rent (often high in prime locations), labor (including night shift premiums), ingredient and supply costs, utilities, marketing, maintenance, technology, and insurance. Effective management of these expenses is crucial to maintaining profitability.
Conclusion
Insomnia Cookies is a well-established bakery brand specializing in late-night cookie delivery with a strong presence in the U.S. and expanding internationally. While the company is not currently franchising and operates corporate-owned stores, understanding the franchise costs, potential profits, and operational requirements provides valuable insight for entrepreneurs interested in similar business models.
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