What is the average total operating expenses for the top 25% of Cream locations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Total Operating Expenses does not include the estimated cost of any owner-operator salary and/or distributions or other compensation.
Other Costs means all other costs other than as specifically counted above, including meals and travel expenses, shop experience, supplier services and fees, software and technology costs, marketing costs, and charitable donations.
It does not include any interest or financing costs, deduction for depreciation or amortization, and/or any income or other types of taxes.
Other costs does not include an imputed Technology Fee.
Other Costs also does not include any of our affiliates' costs for corporate level employees or other expenses that are not specifically attributable to a location.
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 Total Operating Expenses was $598,102. Total Operating Expenses is defined as the sum of annual Direct Labor, Occupancy, Supplies, Credit Card Fees, Partnership Fees, Repairs and Maintenance, and Other Costs.
It's important to note that these Total Operating Expenses do not include the estimated cost of any owner-operator salary, distributions, or other compensation. Additionally, the expenses do not include interest or financing costs, deductions for depreciation or amortization, or any income or other types of taxes. The 'Other Costs' category also excludes an imputed Technology Fee and any of Cream's affiliates' costs for corporate-level employees or other expenses not specifically attributable to a location.
Prospective franchisees should understand that the $598,102 figure represents the median, not the average. This means that half of the stores in the top 25% had expenses at or below this amount, and half had expenses above it. Furthermore, this figure is based on a specific group of Item 19 Shops, and performance may vary. Franchisees should carefully consider all components of operating expenses and how they might fluctuate based on location, market conditions, and their own management capabilities.
It is also important to note that while 57% of the Item 19 Shops in the top 25% had annual Total Operating Expenses equal to or lower than the average annual Total Operating Expenses, the median is the only figure provided in the document. To get a clearer picture, a prospective franchisee should ask Cream for the average annual Total Operating Expenses for the top 25% of locations, as well as a detailed breakdown of what is included in each expense category.