For a Cream franchise, do the Business Licenses and Permits estimates include occupancy and construction permits?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Business Licenses and Permits.
This estimate includes the cost of obtaining local business licenses which typically remain in effect for one year.
These figures do not include occupancy and construction permits.
The cost of these permits and licenses will depend on the location of your Shop.
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 Business Licenses and Permits, ranging from $500 to $1,000, does not include expenses for occupancy and construction permits. These figures cover the cost of obtaining local business licenses, which are typically valid for one year. The FDD specifies that the cost of occupancy and construction permits will vary depending on the Cream shop's location. Therefore, prospective franchisees should anticipate additional costs beyond the stated estimate for business licenses and permits to account for occupancy and construction permits.
Given that these costs are location-dependent, it is crucial for potential Cream franchisees to research the specific permit requirements and associated fees in their desired area. This due diligence will help in creating a more accurate financial projection for the initial investment. Franchisees should contact local government agencies or consult with a professional experienced in local permitting processes to obtain precise cost estimates.
Understanding the distinction between the included business licenses and the excluded occupancy and construction permits is essential for budgeting purposes. Failing to account for the latter could lead to underestimating the total initial investment required to open a Cream franchise. Therefore, franchisees should proactively gather information on these costs to ensure they have sufficient capital to cover all necessary permits and licenses.