What is the average COGS for the top 25% of Cream locations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
d annual Net Sales that met or exceeded the average annual Net Sales and $933,444 was the median annual Net Sales.
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- COGS means the landed cost of ice cream products and other food, merchandise, beverage products, and ingredients. For products purchased from our Parent, we have imputed the price our Parent would have charged to these Item 19 Shops had they not been owned by our Parent and our affiliates. In the top 25% quartile, 12 Item
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cost of Goods Sold (COGS) includes the landed cost of ice cream products, food, merchandise, beverage products, and ingredients. For Cream shops that purchase products from Cream's parent company, the FDD imputes a price that the parent company would have charged had the shops not been owned by the parent or its affiliates.
For the top 25% of Cream locations, the median annual COGS was $326,708. The FDD also states that 57% of the shops in the top 25% quartile had annual COGS equal to or lower than the average annual COGS.
It is important to note that the FDD provides the median annual COGS, not the average. A prospective franchisee should speak with Cream to understand how the average annual COGS is calculated and what factors could cause an individual store's COGS to vary significantly from the median.