What is the low-end estimate for the total initial investment 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 | |||||
| Lease and Utility Security Deposits 3 | $6,000 | $20,000 | As arranged | As arranged | Unaffiliated third parties (e.g., utility companies, landlord) |
| Architect, Permits, Engineers, and Licenses 4 | $40,000 | $60,000 | As arranged | As arranged | Unaffiliated third parties (e.g., architect, engineer, designer) |
| Leasehold | $375,000 | $700,000 | As arranged | As arranged | Unaffiliated third |
| Improvements 5 | parties | ||||
| Furniture, Fixtures, and | $70,000 | $134,000 | As arranged | As arranged | Approved third- |
| Equipment 6 | party suppliers | ||||
| Décor Package 7 | $2,000 | $10,000 | As arranged | As arranged | Approved third- party suppliers |
| Computer System and | $2,000 | $4,000 | As arranged | As arranged | Approved third- |
| Technology 8 | party suppliers | ||||
| Tools and Supplies 9 | $12,000 | $16,000 | As arranged | As arranged | Approved third- party suppliers |
| Signage 10 | $10,000 | $30,000 | As arranged | As arranged | Approved third- party suppliers |
| Business Licenses and | $500 | $1,000 | As required | As required | Government |
| Permits 11 | agencies | ||||
| Type of Expenditure | Amount Low | Method of Payment 1 | When Due | To Whom Payment is Made | |
| Professional Fees 12 | $10,000 | $17,000 | As arranged | As arranged | Unaffiliated third parties (e.g., accountant, attorney) |
| Initial Inventory 13 | $20,000 | $26,000 | As arranged | As arranged | Us and approved third-party suppliers |
| Ongoing Inventory (3 months) 13 | $52,000 | $87,000 | As arranged | As arranged | Us and approved third-party suppliers |
| Insurance (3 months) 14 | $500 | $750 | As arranged | As incurred | Unaffiliated third parties (e.g., insurance companies) |
| Initial Training Program Expenses 15 | $3,000 | $5,000 | As arranged | As incurred | Unaffiliated third parties (e.g., airlines, hotels, restaurants) |
| Grand Opening | $20,000 | $25,000 | As arranged | As arranged | Unaffiliated third |
| Advertising 16 | parties | ||||
| Additional Funds – First 3 Months of Operation 17 | $15,000 | $30,000 | As incurred | As incurred | Unaffiliated and approved third- party suppliers (e.g., employees) |
| TOTAL ESTIMATED | $696,000 | $1,265,750 | |||
| INITIAL | |||||
| INVESTMENT 18 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the total estimated initial investment to open a franchise ranges from $696,000 to $1,265,750. This includes various expenditures, such as the initial franchise fee, real estate costs, lease and utility security deposits, and expenses for architects, permits, and licenses.
The initial franchise fee is a flat $40,000, payable upon signing the Franchise Agreement. Real estate costs, covering three months' rent, range from $18,000 to $60,000, while lease and utility security deposits range from $6,000 to $20,000. Costs for architects, permits, engineers, and licenses are estimated between $40,000 and $60,000. Leasehold improvements account for a significant portion of the investment, ranging from $375,000 to $700,000.
Other notable costs include furniture, fixtures, and equipment, estimated between $70,000 and $134,000, and a décor package ranging from $2,000 to $10,000. The computer system and technology costs range from $2,000 to $4,000, while tools and supplies are estimated between $12,000 and $16,000. Signage costs range from $10,000 to $30,000, and business licenses and permits range from $500 to $1,000. Professional fees are estimated between $10,000 and $17,000. Initial inventory costs $20,000 to $26,000, ongoing inventory for the first three months costs $52,000 to $87,000, and insurance for three months costs $500 to $750. Initial training program expenses range from $3,000 to $5,000, grand opening advertising costs $20,000 to $25,000, and additional funds for the first three months of operation range from $15,000 to $30,000.