What is the average Gross Margin (%) for the top 25% of Cream shops?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
m 19 Shops, 47 (57%) had equal or lower COGS than the average annual COGS and $252,854 was the median annual COGS.
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- Gross Profit means annual Net Sales less annual COGS and is expressed as a dollar amount and as a percentage of annual Net Sales. In the top 25% quartile, 10 Item 19 Shops (48%) had annual Gross Profit that met or exceeded the average annual Gross Profit and $1,022,355 was the median annual Gross Profit. In the upper mid 25% quartile, 7 Item 19 Shops (33%) had a
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
Based on Cream's 2025 Franchise Disclosure Document, Item 19 defines Gross Profit as annual Net Sales less annual COGS (Cost of Goods Sold), expressed both as a dollar amount and as a percentage of annual Net Sales. However, the document does not explicitly state the average Gross Margin percentage for the top 25% of Cream shops. Instead, it provides the median annual Gross Profit in dollar terms for the top 25% quartile, which is $1,022,355.
To calculate the Gross Margin percentage, one would need to divide the Gross Profit by the Net Sales. While the FDD provides the median Net Sales for the top 25% quartile ($1,349,253), it does not provide the average Net Sales or the average Gross Profit. Without these figures, it is impossible to determine the average Gross Margin percentage directly from the provided data.
A prospective Cream franchisee should ask the franchisor for the average Gross Margin percentage for the top 25% of shops to gain a clearer understanding of the financial performance of the best-performing locations. This information would be valuable in assessing the potential profitability of a Cream franchise and setting realistic financial goals. Understanding the difference between median and average values is also crucial; the median represents the midpoint, while the average provides a more comprehensive view when considering the entire range of performance.