What is the average other costs for the top 25% of Cream locations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
affiliates' costs for corporate level employees or other expenses that are not specifically attributable to a location. In the top 25% quartile, 14 Item 19 Shops (67%) had annual Other Costs equal to or lower than the average annual Other Costs, and $36,635 was the median annual Other Costs. In the upper mid 25% quartile, 14 Item 19 Shops (67%) had annual Other Costs equal to or lower than the average annual Other Costs and $29,116 was the median annual Other Costs. In the lower mid 25% quartile, 14 Item 19 Shops (67%) had annual Other Costs equal to or lower than the average annual Other Costs and $23,792 was the median
annual Other Costs. In the bottom 25% quartile, 14 Item 19 Shops (70%) had annual Other Costs equal to or lower than the average annual Other Costs and $31,462 was the median annual Other Costs. Out of all Item 19 Shops, 48 (58%) had equal or lower Other Costs than the average annual Other Costs and $32,068 was the median annual Other Costs.
-
- Total Operating Expenses means the sum of annual Direct Labor, Occupancy, Supplies, Credit Card Fees, Partnership Fees, Repairs and Maintenance, and Other Costs. In the top 25% quartile, 12 Item 19 Shops (57%) had annual Total Operating Expenses equal to or lower than the average annual Total Operating Expenses, and $598,102 was the median annual Total Operating Expenses. In the upper mid 25% quartile, 12 Item 19 Shops (57%) had annual Total Operating Expenses equal to or lower than the average annual Total Operating Expenses and $460,894 was the median annual Total Operating Expenses. In the lower mid 25% quartile, 13 Item 19 Shops (62%) had annual Total Operating Expenses equal t
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 locations, the median annual "Other Costs" was $36,635. The FDD specifies that 67% of the shops in the top 25% quartile had annual "Other Costs" equal to or lower than the average annual "Other Costs".
"Other Costs" include expenses such as meals, travel, shop experience, supplier services and fees, software and technology, marketing, and charitable donations. However, these costs do not include interest, financing, depreciation, amortization, income taxes, or an imputed Technology Fee. Additionally, "Other Costs" do not include expenses from Cream's affiliates for corporate-level employees or other costs not directly attributable to a specific location.
Prospective franchisees should note that the $36,635 figure represents the median, not the average. While 67% of the top-performing locations had "Other Costs" at or below the average, this implies that some locations had significantly higher costs, skewing the average upwards. Understanding the specific factors that can influence these "Other Costs" will be crucial for budgeting and financial planning.
It is important for potential Cream franchisees to investigate what contributes to these "Other Costs" and how they can be managed effectively. This includes understanding the specific software and technology costs, marketing expenses, and any supplier fees that may be incurred. By gaining clarity on these components, franchisees can better estimate their potential expenses and improve their financial performance.