What is the low 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 low estimate for real estate rent for three months is $18,000. This figure is part of the estimated initial investment required to open a Cream franchise. The FDD notes that this amount is to be arranged with the landlord.
Cream specifies that the shop must be in an upscale setting such as a shopping mall, lifestyle center, or strip shopping center, and the actual rent can vary based on local market conditions, the economy, and inflation. The size of the space needed is approximately 900 to 1,400 square feet, which also influences the rental cost. Landlords may also charge rent based on a percentage of gross sales, in addition to base rent.
Furthermore, the lease agreement may require the franchisee to pay common area maintenance charges, a pro rata share of real estate taxes and insurance, and a share of other charges, including contributions to a shopping center marketing fund. The final amount paid will depend on the shop's size, the types of charges allocated to tenants, negotiation skills with landlords, and prevailing rental rates in the area. Therefore, while the initial estimate provides a baseline, franchisees should conduct thorough research and negotiate favorable lease terms to manage their occupancy costs effectively.