What is the average occupancy cost for the top 25% of Cream locations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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%)
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, occupancy costs include rent, utilities, property insurance, and common area maintenance for the real property. For the top 25% of Cream locations, the median annual occupancy cost was $130,062. The FDD indicates that 13 of the Item 19 Shops in the top 25% (62%) had annual occupancy costs equal to or lower than the average annual occupancy.
This information is helpful for prospective Cream franchisees as it provides a benchmark for occupancy costs in the highest-performing locations. Understanding this figure can aid in evaluating potential locations and negotiating lease terms. It's important to note that this is a median value, and actual costs may vary depending on the specific location, lease terms, and other factors.
It is also important to note that the median occupancy cost represents the midpoint of the range of costs for the top 25% of locations. While 62% of the top locations had costs at or below the average, this also means that 38% had costs above this average. Therefore, franchisees should conduct thorough due diligence to estimate their potential occupancy costs accurately.