What costs are included in the definition of 'Repairs and Maintenance' for Cream shops?

According to Cream's 2025 Franchise Disclosure Document, 'Repairs and Maintenance' is defined as the cost of maintenance and repair of equipment and the premises. This definition is important for prospective franchisees as it clarifies what expenses are included under this category when assessing the financial performance of Cream shops. Understanding this definition allows potential franchisees to better interpret the financial performance representations provided in Item 19 of the FDD.

Specifically, Item 19 provides data on the median annual 'Repairs and Maintenance' costs for various quartiles of Cream shops. For example, the median annual 'Repairs and Maintenance' cost for shops in the top 25% quartile was $31,334, while for all Item 19 Shops, the median was $23,479. Knowing that these figures include both equipment and premises repairs gives a clearer picture of the potential maintenance expenses a new franchisee might face.

This definition helps franchisees differentiate 'Repairs and Maintenance' costs from other operating expenses such as 'Occupancy' (rent, utilities, property insurance, and common area maintenance) or 'Supplies' (paper goods, packaging, cleaning, and office supplies). By understanding exactly what is included in each expense category, a prospective Cream franchisee can develop a more accurate financial model for their potential business.