For a Cream franchise, what is the estimated cost of the initial inventory purchased from Parent?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ng up your chart of accounts with an accountant.
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- Initial and Ongoing Inventory. This estimate represents initial inventory that you will purchase prior to opening your Shop, including the initial inventory you purchase from Parent (estimated at $16,000 to $21,000, as described in Item 5) and other inventory for your Shop that you must purchase from approved third-party suppliers (such as waffle mix, toppings, beverages, non-branded merchandise, paper products, and branded packaging materials). Ongoing inventory includes an estimate of your inventory purchas
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 the initial inventory purchased from Parent is part of a larger range for total initial inventory. The total initial inventory costs are estimated to be between $20,000 and $26,000. This includes inventory purchased from Cream's Parent company, as well as from approved third-party suppliers.
The initial inventory includes items needed to open the Cream shop, such as waffle mix, toppings, beverages, non-branded merchandise, paper products, and branded packaging materials. The FDD notes that ongoing inventory, estimated for the first three months of operation, is separate from the initial inventory costs.
Prospective franchisees should note that the initial inventory costs are estimates and can vary. It is important to clarify with Cream what portion of the $20,000 to $26,000 range is specifically for purchases from the Parent company versus third-party suppliers. Understanding this breakdown will help in budgeting and managing initial expenses.