For Cream franchises in the upper mid 25% quartile, what was the median annual Gross Profit?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
m 19 Shops, 47 (57%) had equal or lower COGS than the average annual COGS and $252,854 was the median annual COGS.
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- Gross Profit means annual Net Sales less annual COGS and is expressed as a dollar amount and as a percentage of annual Net Sales. In the top 25% quartile, 10 Item 19 Shops (48%) had annual Gross Profit that met or exceeded the average annual Gross Profit and $1,022,355 was the median annual Gross Profit. In the upper mid 25% quartile, 7 Item 19 Shops (33%) had a
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 Gross Profit for the upper mid 25% quartile of Item 19 Shops was $703,993. This figure represents the midpoint gross profit amount achieved by Cream shops that fall within the 50th to 75th percentile range of financial performance. It is important to note that this data is based on the performance of corporate-owned locations, as Cream did not have any franchised outlets operating as of the end of their most recent fiscal year.
Gross Profit is defined as annual Net Sales less annual COGS (Cost of Goods Sold). Net Sales includes all revenue derived from operating the shops, while COGS includes the landed cost of ice cream products, food, merchandise, beverage products, and ingredients. For corporate-owned shops that purchased products from Cream's parent company, the franchisor imputed the price that the parent would have charged had the shops been independently owned.
It is important for prospective franchisees to understand that past performance is not indicative of future results. The FDD explicitly states that individual results may differ and there is no assurance that a franchisee will earn as much. Cream encourages prospective franchisees to report any unauthorized financial performance information or projections to the franchisor's management, the Federal Trade Commission, and appropriate state regulatory agencies. Franchisees should also request written substantiation for the financial performance representation to gain a better understanding of the data and its underlying assumptions.