How to Finance a Great American Cookies Franchise: Mall Costs
By Marc Cornella
A Great American Cookies franchise loan usually finances a small, high-traffic bakery: a mall storefront or food court unit, a co-branded shop or a converted location, built around ovens, display cases and the brand’s cookie cakes. Because the brand is not on the SBA Franchise Directory, most buyers should plan around conventional financing.
This article explains what the brand is, what goes into the cost of opening or buying a store, how mall leases shape a loan, why SBA lending is generally not the route today and how lenders evaluate a new store, a resale or a multi-unit plan.
US Professional Funding is not affiliated with, sponsored by or endorsed by Great American Cookies; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Great American Cookies Franchise Loan at a Glance
- Concept: a cookie and dessert bakery known for its Original Cookie Cake, founded in 1977 on a family chocolate chip cookie recipe.
- System size: the company reported opening its 400th location in 2023, with stores in 31 states and five countries at that time.
- Formats: bakeries in malls and other retail settings, co-branded stores with an ice cream sister brand and converted locations.
- Fees and investment: the franchise fee, royalty, advertising contribution and Item 7 investment range are set out in the current FDD; request the newest version before you size a loan.
- Ownership: the brand’s former parent company went through Chapter 11 cases in 2026 and its brands were sold to a new ownership group, so the newest FDD matters.
- SBA Franchise Directory: not listed, so conventional financing is the primary route for most buyers.
What Is Great American Cookies?
Great American Cookies began in 1977 with a family chocolate chip cookie recipe and grew into one of the best-known cookie brands in American shopping malls. The menu centers on fresh-baked cookies, brownies, Double Doozies sandwich cookies and the Original Cookie Cake, which is often decorated to order for birthdays, holidays and celebrations. The company also sells treats that can be shipped to customers’ homes.
Growth and conversions. The company reported opening its 400th location in August 2023 and said it had opened 73 new locations in the prior two years, entering Alaska, Arizona, Illinois and New Mexico. In 2022, its parent company acquired another cookie cafe chain, and the company said more than 50 of those cafes were converted to Great American Cookies.
Co-branding. Great American Cookies has co-branded with a sister ice cream brand since 2009, and the company said in 2023 that more than 179 co-branded locations operated worldwide. A co-branded store carries two menus and two sets of equipment under one lease, which changes the build-out budget and the projections a lender reviews.
Ownership change. In 2026, the brand’s former parent company went through Chapter 11 cases, and its brand assets were sold to a new ownership group in a court-supervised sale. Great American Cookies continues to operate and franchise. For a borrower, the practical step is to ask for the newest FDD issued after the sale and to read Items 1 through 4 for the franchisor’s current ownership, management and litigation history, and Item 21 for its financial statements.
Why lenders view Great American Cookies the way they do. Lenders generally see an established dessert brand with a long track record and a simple product line. They also see a small-footprint store whose sales depend heavily on its host property’s foot traffic, so the location and the lease often matter as much as the brand.
Great American Cookies Franchise Costs
Every dollar figure for a new store belongs in the FDD. Item 5 sets the initial franchise fee, Item 6 lists ongoing fees and Item 7 gives the estimated initial investment, line by line. Because the franchisor changed hands in 2026, use only the newest FDD for dollar figures.
Initial franchise fee. Item 5 states the fee and any reduced fee for additional stores, conversions or co-branded units. Ask whether a co-branded store pays one fee or two.
Lease and build-out. Most stores are in leased retail space, so there is no real estate to buy. Build-out covers the counter, display cases, oven area, plumbing and electrical, finishes and signage. Mall landlords often have their own design criteria, construction rules and timelines, and some contribute a tenant improvement allowance.
Equipment. Convection ovens, mixers, sheet pans and racks, refrigeration and freezer space for dough, a cookie cake decorating station, display cases and point-of-sale technology make up most of the equipment package. Co-branded stores add ice cream equipment.
Opening costs and working capital. Opening inventory, training travel, grand opening marketing, security deposits and the cash to carry payroll and rent until sales settle all belong in the budget.
Total investment. Item 7 of the FDD typically groups the costs into categories such as:
- Initial franchise fee
- Leasehold improvements and construction
- Equipment, furniture and fixtures
- Signage
- Opening inventory and supplies
- Training expenses
- Security deposits, licenses and insurance
- Additional funds for the initial operating period
Check each line’s range and assumptions, and note whether the table describes an in-line mall store, a food court unit, a kiosk, a co-branded store or a conversion.
Ongoing Fees and How They Affect Your Loan
Royalty and advertising. Item 6 sets out the royalty and the brand or advertising fund contribution, generally as percentages of gross sales.
Technology and other fees. Look for point-of-sale, online ordering and software fees, plus training, transfer and renewal fees.
Mall occupancy costs. Mall leases often include base rent, common area maintenance charges, marketing fund charges and, in some cases, percentage rent once sales pass a breakpoint. Together with the royalty and advertising fees, these can absorb a significant share of sales before payroll and ingredients.
How lenders factor these costs in. Lenders build every sales-based fee and occupancy charge into projections, then test whether the store can cover debt service in a slower year. For a resale, they adjust the seller’s results for any new lease terms the buyer will sign.
Franchisor Requirements for New Owners
Great American Cookies sets its own candidate criteria, including any minimum net worth and liquid capital expectations, and they may have changed after the 2026 sale. Ask the franchise development team for the current numbers and confirm them against the FDD.
What franchisors in this category generally look for. Expect questions about your liquidity, credit, retail or food service management experience and whether you will operate the store yourself or through a manager. Multi-unit candidates should expect a closer review of their operating track record.
The approval process. Approval typically includes an application, review of your finances, FDD delivery and discovery calls, and franchisor review of the proposed site and lease. Line up financing early, because a mall landlord’s lease timeline and the franchisor’s approval timeline both need to fit your loan closing.
Ways to Own a Great American Cookies
A new store. A new location is financed on projections, the owner’s capital and a signed lease. Lenders will want the landlord’s construction requirements, contractor bids and the Item 7 budget. Our overview of franchise start-up financing covers how new-unit loans are usually structured.
Buying an existing store. A resale lets the lender rely on actual sales history, but it also brings a lease that may be near its end and equipment that may need replacing. Franchisor transfer approval and landlord consent are both required. Read our article on buying a franchise resale for how transfers fit a loan timeline.
Co-branded and conversion stores. A co-branded unit or a conversion from another dessert concept may reduce some build-out costs by reusing space and equipment, but it adds a second menu or a remodel. Ask the franchisor which conversions it currently approves.
Financing Options for a Great American Cookies Franchise
Conventional term loans. Because the brand is not on the SBA Franchise Directory, a conventional business loan is usually the primary tool. Lenders size it to projected or historical cash flow and secure it with business assets and personal guarantees. Terms vary by lender, and every request is underwritten on its own.
Acquisition financing. For an existing store, a term loan can cover goodwill, equipment and inventory. See our overview of franchise restaurant acquisition financing.
SBA 7(a) loans. The SBA 7(a) program is widely used for franchises, but SBA lenders generally require a directory listing first. See the SBA section below.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived equipment. Most Great American Cookies stores lease space inside a larger property, so SBA 504 financing rarely fits, and it would also depend on the brand’s directory status.
Equipment financing. Ovens, mixers, refrigeration, decorating equipment and display cases can be financed or leased separately to preserve cash. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. Cookie and cookie cake sales tend to peak around holidays, graduations and back-to-school, and mall traffic rises sharply in the holiday season. A line of credit can cover seasonal staffing and inventory ahead of those peaks. Explore restaurant working capital options.
Seller financing on resales. A seller may carry part of the price on an existing store. Any seller note must be acceptable to the senior lender and is typically subordinate to it.
SBA Loans for Great American Cookies Franchisees
The SBA Franchise Directory lists the brands whose franchise documents have been reviewed for SBA eligibility. SBA lenders generally require a brand to appear on the directory before they can make an SBA-guaranteed loan to one of its franchisees.
Great American Cookies is not on the SBA Franchise Directory. In plain terms, SBA 7(a) and 504 loans are generally not available for a Great American Cookies store as things stand, so plan on conventional financing. That is not a judgment about the brand; a franchisor must submit its documents for review, and some brands are not listed for that reason alone.
Directory status can change, especially after a change in ownership. Ask the franchisor whether it intends to seek a listing and confirm the status with your lender when you apply. If the brand were listed, the SBA 7(a) program maximum is currently $5 million, though program rules can change.
How Lenders Evaluate a Great American Cookies Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees.
Net worth and liquidity. Conventional lenders usually expect a meaningful cash contribution and reserves after closing. Our article on how much franchise you can afford walks through the math.
Industry and management experience. Retail, bakery or food service management experience helps, especially running a small team through long mall hours and holiday rushes.
Business plan and projections. Base sales assumptions on the host property’s traffic, the store’s position within it, nearby competition and the cookie cake order business. Include royalty, advertising, rent, common area charges, ingredients and seasonal staffing.
The FDD and franchise agreement. Lenders review the franchise term, renewal and transfer terms, Item 21 financial statements and whether the FDD includes financial performance representations in Item 19. After the 2026 ownership change, expect a lender to read Items 1 through 4 closely. Our article on how lenders read a Franchise Disclosure Document explains which items matter.
Site and lease. The lease term should cover the loan term. Lenders also look at co-tenancy clauses, relocation rights the landlord may hold, radius restrictions and the health of the host property.
Historical financials for resales. Lenders compare the seller’s profit and loss statements with tax returns and sales reports, and look at monthly sales to understand seasonality.
Mall Leases and Store Formats
Many Great American Cookies stores sit in enclosed malls, food courts and other high-traffic retail settings, and that location model shapes financing more than any other factor.
Lease terms. Mall leases are often shorter than a lender would like and may include relocation clauses, kick-out rights if sales fall short, and co-tenancy provisions tied to anchor stores. Negotiate a term and renewal options that match your loan.
Landlord work and allowances. Some landlords deliver space in shell condition, while others contribute an allowance. Lenders will want to see who pays for what before approving a build-out budget.
Host property risk. If an anchor tenant closes or traffic declines, store sales can fall quickly. Lenders may ask about the property’s occupancy and recent changes.
Multi-Unit Growth and Development
Many cookie and dessert operators grow by adding stores in nearby malls or by taking over existing locations.
Financing a second or third store. Once your first store has operating history, lenders can weigh its cash flow alongside the new one. Each additional store needs franchisor approval and its own lease, and lenders will want consolidated financial statements as the group grows.
Development agreements. If the franchisor offers a multi-unit development schedule, budget each store’s opening date and make sure financing for later units is realistic before you commit.
Real-World Scenarios
A retail manager opening a first store. A former store manager signs a lease in a regional mall. A conventional term loan covers the build-out and equipment, and the owner keeps a reserve for the first holiday season.
A buyer taking over a food court store. A buyer purchases an existing store whose lease has several years left. The lender reviews monthly sales history, confirms the landlord’s consent and finances the purchase with a modest seller note.
An operator adding a co-branded location. An owner with two stores opens a co-branded unit and finances the additional ice cream equipment separately.
Common Mistakes to Avoid
- Assuming SBA financing is available for a brand that is not on the directory
- Using fee or investment figures from an FDD issued before the 2026 ownership change
- Signing a mall lease shorter than the loan term
- Overlooking common area charges and percentage rent in projections
- Underfunding working capital ahead of the holiday season
- Buying a resale without checking the remaining lease term and landlord consent
Read more about the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Great American Cookies Franchise
Step 1: Request the newest FDD. Make sure it was issued after the 2026 ownership change, and review Items 1 through 7, 10, 17, 19 and 21 with a franchise attorney and accountant.
Step 2: Confirm the franchisor’s requirements. Ask for current net worth and liquidity expectations.
Step 3: Talk with a financing specialist. Learn what conventional lenders will need. Our conventional loan calculator gives early payment estimates for planning only.
Step 4: Secure a site. Negotiate a lease or letter of intent with a term that fits your loan.
Step 5: Build your budget and projections. Use Item 7, contractor bids and the landlord’s requirements.
Step 6: Apply and close. Submit your loan package and coordinate franchisor, landlord and lender approvals.
Great American Cookies Franchise Loan FAQs
How much does a Great American Cookies franchise cost?
The estimated initial investment is set out in Item 7 of the current FDD and varies by format. Use the newest FDD, because figures may have changed after the 2026 sale.
What is the Great American Cookies franchise fee?
Item 5 of the current FDD states the initial franchise fee and any reduced fees for additional, co-branded or conversion stores.
What royalty does Great American Cookies charge?
Item 6 of the FDD lists the royalty and advertising contributions, generally as percentages of gross sales.
Can I get an SBA loan for a Great American Cookies franchise?
The brand is not on the SBA Franchise Directory, so SBA loans are generally not available today. Most buyers use conventional financing.
Does Great American Cookies offer financing?
Check Item 10 of the current FDD for any franchisor financing. Most franchisees arrange their own loans.
Can I finance equipment separately?
Yes. Ovens, mixers, refrigeration and display cases can be financed or leased separately.
Can I buy an existing store?
Yes, with franchisor transfer approval and landlord consent. A Great American Cookies franchise loan for a resale is underwritten on the store’s actual sales history.
Can a first-time owner get a Great American Cookies franchise loan?
Yes, with solid credit, a meaningful cash contribution and relevant management experience.
How many locations does Great American Cookies have?
The company reported opening its 400th location in 2023, with stores in 31 states and five countries at that time.
What documents do lenders need?
Tax returns, a personal financial statement, the FDD, the lease or letter of intent, contractor bids and projections. Resales also need the store’s historical financials.
Final Thoughts
A Great American Cookies franchise loan comes down to three things: the newest FDD, a mall lease that fits the loan and a realistic plan for seasonal sales. With conventional financing as the main route, buyers who prepare early and keep a healthy reserve put themselves in the best position.
US Professional Funding helps franchise owners and buyers finance new stores, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
