What is the estimated low and high cost for leasehold improvements for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement)
| Type of Expenditure | Amount | Method of Payment 1 | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Low | |||||
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Rea |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the estimated cost for leasehold improvements ranges from $375,000 to $700,000. These costs, paid to unaffiliated third parties, are estimates for converting a leased space into a Cream shop.
The FDD notes that the cost of leasehold improvements can vary significantly based on factors such as the size and configuration of the premises, pre-construction costs like demolition and removal of existing fixtures, and the cost of materials and labor. These costs can also depend on local conditions, the availability and prices of labor and materials, and whether the landlord contributes to these expenses through tenant improvement allowances.
The low end of the estimate, $375,000, assumes that the franchisee leases a space requiring fewer improvements and is approximately 900 square feet. The high end, $700,000, assumes a blank space requiring more extensive improvements and is approximately 1,400 square feet. It's important to note that these estimates do not include any tenant improvement allowance that a franchisee might negotiate with the landlord. Cream also requires franchisees to use their designated architect and may require the use of their designated architects as project managers if the franchisee cannot demonstrate past experience in managing the construction process of a retail store front.