What is the average Annual Net Profit for the top 25% of Cream shops?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
In the top 25% quartile, 8 Item 19 Shops (38%) had annual Net Profit that met or exceeded the average annual Net Profit and $298,015 was the median annual Net Profit.
Net Profit means annual Gross Profit, less Total Operating Expenses and Royalty and Brand Fund Contributions and is expressed as a dollar amount and as a percentage of Gross Profit.
Imputed Royalty and Brand Fund Contributions is calculated as 7% of average annual Net Sales, based on the 5% Royalty Fee and 2% Brand Fund Contribution that a franchisee would be required to pay us.
These amounts were not paid by the reporting corporate-owned locations.
Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, for the top 25% of shops, the median annual Net Profit was $298,015. It is important to note that this is the median, not the average. The FDD indicates that 38% of the shops in the top 25% quartile, specifically 8 out of the Item 19 Shops, met or exceeded the average annual Net Profit.
Net Profit is defined as annual Gross Profit, less Total Operating Expenses, Royalty, and Brand Fund Contributions. The Royalty and Brand Fund Contributions are calculated as 7% of average annual Net Sales, based on the 5% Royalty Fee and 2% Brand Fund Contribution that a franchisee would be required to pay. However, these amounts were not actually paid by the reporting corporate-owned locations, but rather imputed for the purposes of the financial performance representation.
Cream states explicitly that some outlets have earned this amount, but individual results may differ, and there is no assurance that a franchisee will earn as much. The FDD also states that written substantiation for the financial performance representation will be made available to you upon reasonable request. Prospective franchisees should carefully consider these factors and request substantiation to gain a better understanding of the potential financial performance of a Cream franchise.