What costs are included in 'Other Costs' for Cream shops?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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, 'Other Costs' encompass a range of expenses beyond those specifically listed in other categories. These include costs such as meals and travel expenses, shop experience costs, supplier services and fees, software and technology costs, marketing costs, and charitable donations. This provides a comprehensive view of the various operational costs a Cream shop may incur.
However, the FDD also clarifies what 'Other Costs' do not include. Specifically excluded are interest or financing costs, deductions for depreciation or amortization, and any income or other types of taxes. Additionally, 'Other Costs' do not include an imputed Technology Fee or any of Cream's affiliates' costs for corporate-level employees or other expenses not directly attributable to a specific location.
For a prospective Cream franchisee, understanding these inclusions and exclusions is crucial for accurate financial planning. By knowing what falls under 'Other Costs,' franchisees can better estimate their potential expenses and manage their budget effectively. It's important to note that these costs can vary significantly depending on factors such as location, marketing strategies, and charitable involvement.