What is the estimated low and high range for real estate rent (for 3 months) for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| Real Estate (3 Months’ | $18,000 | $60,000 | As arranged | As arranged | Landlord |
| Rent) 2 |
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 initial investment for real estate rent for three months ranges from $18,000 to $60,000. This estimate assumes that the franchisee will lease space for their shop in an upscale setting such as a shopping mall, lifestyle center, or strip shopping center approved by Cream. The actual amount paid may vary depending on the size of the shop, the types of charges allocated to tenants under the lease, the franchisee's ability to negotiate with landlords, and the prevailing rental rates in the geographic region. Cream requires the shop to be approximately 900 to 1,400 square feet.
In addition to the base rent, the lease may require the franchisee to pay common area maintenance charges, their pro rata share of real estate taxes and insurance, and their pro rata share of other charges, including a shopping center marketing fund. The FDD notes that local market conditions, changes in the economy, and inflation will also contribute to occupancy costs. Landlords may also vary the base rental rate and charge rent based on a percentage of gross sales.
Prospective franchisees should carefully consider these factors and conduct thorough market research to understand the potential real estate costs in their desired location. Negotiating favorable lease terms and managing occupancy costs effectively will be crucial for the financial success of a Cream franchise.