What are 'Credit Card Fees' defined as for a Cream franchise?

According to Cream's 2025 Franchise Disclosure Document, 'Credit Card Fees' are defined as the amounts paid to credit card processors for customer transactions. This definition is important for prospective franchisees as it clarifies what expenses are included under this category when evaluating the financial performance of Cream shops. Understanding this definition allows franchisees to accurately assess and manage their operating costs.

Specifically, this means that the fees Cream franchisees pay to companies like Visa, Mastercard, American Express, or Discover for processing customer payments made via credit cards are classified as 'Credit Card Fees'. These fees are a standard cost of doing business for any retail operation that accepts credit card payments, and they can vary depending on the credit card processor's rates and the volume of credit card transactions.

The FDD also provides financial performance representations that include median annual Credit Card Fees for different quartiles of Item 19 Shops. For example, the median annual Credit Card Fees for all Item 19 Shops was $26,984. This gives potential franchisees a benchmark to compare their own potential costs against, although individual results may vary. Managing these fees effectively can impact a Cream franchisee's profitability, making it a key area to monitor and optimize.