Are interest or financing costs included in the 'Other Costs' calculation for Cream shops?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Other Costs means all other costs other than as specifically counted above, including meals and travel expenses, shop experience, supplier services and fees, software and technology costs, marketing costs, and charitable donations.
It does not include any interest or financing costs, deduction for depreciation or amortization, and/or any income or other types of taxes.
Other costs does not include an imputed Technology Fee.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, interest and financing costs are explicitly excluded from the 'Other Costs' calculation. The FDD specifies that 'Other Costs' include expenses like meals, travel, shop experience, supplier services and fees, software and technology, marketing, and charitable donations.
This exclusion is significant for prospective Cream franchisees because it provides clarity on what expenses are factored into the 'Other Costs' category when evaluating financial performance. Franchisees should be aware that their actual costs may be higher than the reported 'Other Costs' if they incur interest or financing expenses.
By excluding these costs, Cream aims to present a standardized view of operating expenses directly related to shop operations. This allows potential franchisees to better compare the performance of different Cream locations, without the distortion of varying financing arrangements or debt levels. Franchisees should consider these exclusions when projecting their own potential profitability and ensure they account for all relevant expenses.