Does the Cream estimate for leasehold improvements include the cost of permits?

According to Cream's 2025 Franchise Disclosure Document, the estimated cost for leasehold improvements does include the cost of permits. The FDD indicates that the cost of leasehold improvements can vary significantly, with a low estimate of $375,000 and a high estimate of $700,000. This range depends on factors such as the size and configuration of the premises, pre-construction costs, and the cost of materials and labor.

Cream requires franchisees to use a designated architect and a permit expeditor. The permit expeditor's role is to expedite the building permit process by submitting plans and specifications to the local agency. The high end of Cream's leasehold improvement estimate also includes construction project management services, and Cream mandates the use of their designated architects as project managers if the franchisee lacks prior experience in retail store construction management.

For a prospective Cream franchisee, understanding these cost variables is crucial. The FDD notes that these amounts may depend on local conditions, including the availability and prices of labor and materials, as well as whether certain costs are covered by the landlord through tenant improvement contributions. Franchisees should also be aware that the estimate does not include any tenant improvement allowance that they may negotiate with the landlord, meaning that any negotiated allowance could offset some of these costs. Between 2023 and 2024, Cream's affiliates opened 17 locations and renovated one, with average leasehold improvements costing $563,226, further illustrating the variability in these expenses.