For Cream franchises in the top 25% quartile, what was the median annual COGS?

According to Cream's 2025 Franchise Disclosure Document, the median annual Cost of Goods Sold (COGS) for the top 25% of Cream locations was $326,708. The FDD defines COGS as the landed cost of ice cream products, food, merchandise, beverage products, and ingredients. This figure is based on data from 83 corporate-owned Cream shops that operated for the entirety of the 2024 calendar year.

For a prospective Cream franchisee, this means that if their store performs within the top 25% of all locations, they could expect to spend approximately $326,708 annually on the products needed to run the business. It is important to note that this is a median value, meaning half of the stores in the top 25% had COGS higher than this amount, and half had COGS lower. Also, the FDD states that for products purchased from Cream's parent company, the price that the parent company would have charged to these shops had they not been owned by the parent is imputed.

Understanding COGS is crucial for managing profitability. Franchisees should analyze this figure in conjunction with the reported median annual Net Sales ($1,349,253 for the top 25% quartile) and Gross Profit ($1,022,355 for the top 25% quartile) to assess the potential financial performance of a Cream franchise. Prospective franchisees should also inquire about strategies for managing and potentially reducing COGS, such as efficient inventory management and negotiating favorable supplier terms.

It's also important to remember that these figures are based on corporate-owned stores, as Cream had no franchised outlets operating as of the end of the most recent fiscal year. While the franchisor is using data from comparable stores, prospective franchisees should consider that franchised locations may have different financial results due to factors such as management style, local market conditions, and operating efficiencies.