What is the average Occupancy cost for the top 25% of Cream shops?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
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 its Item 19 shops, the median annual Occupancy cost was $130,062. Occupancy costs include rent, utilities, property insurance, and common area maintenance for the real property. In this top quartile, 62% of the shops (13 out of 19) had annual occupancy costs equal to or lower than the average.
For a prospective Cream franchisee, understanding occupancy costs is crucial, as these expenses can significantly impact profitability. The median occupancy cost of $130,062 for the top 25% of shops provides a benchmark for franchisees to evaluate potential locations and negotiate lease terms. It's important to note that this figure represents the median, and actual costs may vary depending on location, size, and other factors.
Cream franchisees should carefully consider these occupancy costs when developing their business plan and financial projections. They should also consult with experienced real estate professionals to identify suitable locations and negotiate favorable lease terms. By managing occupancy costs effectively, franchisees can improve their chances of success and maximize their profitability.