For Cream franchises in the top 25% quartile, what was the median annual Total Operating Expenses?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
annual Direct Labor, Occupancy, Supplies, Credit Card Fees, Partnership Fees, Repairs and Maintenance, and Other Costs. In the top 25% quartile, 12 Item 19 Shops (57%) had annual Total Operating Expenses equal to or lower than the average annual Total Operating Expenses, and $598,102 was the median annual Total Operating Expenses. In the upper mid 25% quartile, 12 Item 19 Shops (57%) had annual Total Operating Expenses equal to or lower than the average annual Total Operating Expenses and $460,894 was the median annual Total Operating Expenses. In the lower mid 25% quartile, 13 Item 19 Shops (62%) had annual Total Operating Expenses equal t
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the median annual Total Operating Expenses for the top 25% quartile of Item 19 Shops was $598,102. The data is based on 83 corporate-owned Jeni's Ice Creams Scoop Shops that operated for the entirety of the 2024 calendar year. The Item 19 Shops are divided into quartiles based on annual Net Profit for the 2024 calendar year.
Total Operating Expenses is defined as the sum of annual Direct Labor, Occupancy, Supplies, Credit Card Fees, Partnership Fees, Repairs and Maintenance, and Other Costs. The FDD specifies that Total Operating Expenses does not include the estimated cost of any owner-operator salary and/or distributions or other compensation.
For a prospective Cream franchisee, this figure represents a benchmark for operating expenses in the most profitable stores. It's important to note that 57% of the shops in the top 25% quartile had annual Total Operating Expenses equal to or lower than the average annual Total Operating Expenses. This suggests that while $598,102 was the median, some shops in this quartile had lower expenses. Franchisees should carefully analyze these expenses to understand potential costs and profitability.