What is the high estimate for real estate rent (3 months) for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment 1 | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Low | |||||
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Real Estate (3 Months’ | $18,000 | $60,000 | As arranged | As arranged | Landlord |
| Rent) 2 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the high estimate for real estate rent for three months is $60,000. This figure is part of the estimated initial investment required to start a Cream franchise.
The FDD notes that this estimate assumes the franchisee will lease space for their shop in an upscale setting such as a shopping mall, lifestyle center, or strip shopping center approved by Cream. The actual amount paid for rent can vary significantly based on local market conditions, economic changes, inflation, the size of the shop (which should be between 900 to 1,400 square feet), and the ability to negotiate lease terms with landlords.
In addition to the base rent, the lease agreement may require the franchisee to pay common area maintenance charges, a pro rata share of real estate taxes and insurance, and contributions to a shopping center marketing fund. These additional costs can further impact the overall occupancy expenses for a Cream franchise. Therefore, prospective franchisees should carefully consider these factors and conduct thorough market research to accurately estimate their potential rental costs.