What is the average direct labor cost for the top 25% of Cream locations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ot include compensation for any corporate employees of ours or our Parent (such as accounting and marketing personnel). In the top 25% quartile, 12 Item 19 Shops (57%) had annual Direct Labor equal to or lower than the average annual Direct Labor, and $272,760 was the median annual Direct Labor. In the upper mid 25% quartile, 11 Item 19 Shops (52%) had annual Direct Labor equal to or lower than the average annual Direct Labor and $231,486 was the median annual Direct Labor. In the lower mid 25% quartile, 12 Item 19 Shops (57%) had annual Direct Labor equal to or lower than the average annual Direct Labor and $162,713 was the median annual COGS. In the bottom 25% quartile, 9 Item 19 Shops (45%) had annual Direct Labor equal to or lower than the average annual Direct Labor and $301,316 was the median annual Direct Labor. Out of all Item 19 Shops, 44 (53%) had equal or lower Direct Labor than the average annual Direct Labor and $246,443 was the median annual Direct Labor.
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- Occupancy means the cost of rent, utilities, property insurance, and common area maintenance for the real property. In the top 25% quartile, 13 Item 19 Shops (62%) had annual Occupancy equal to or lower than the average annual Occupancy, and $130,062 was the median annual Occupancy.
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 direct labor cost was $272,760. Direct labor includes wages, compensation paid to shop employees, payroll taxes, and employee benefits, but excludes payroll admin costs. It also includes the cost of one shopkeeper per Cream shop, but does not include compensation for any corporate employees.
This figure represents the median, meaning half of the stores in the top 25% had direct labor costs at or below this amount, while the other half had costs above it. It is important to note that this is not an average, but a median.
A prospective Cream franchisee should consider this figure as a benchmark when projecting their own labor costs. Factors such as local wage rates, staffing levels, and employee benefits packages can significantly impact actual costs. It's also important to understand what is included and excluded in Cream's definition of direct labor to accurately compare this figure to their own potential expenses.