aggregated_summary

What was the median annual Direct Labor for Cream franchises overall?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

al Direct Labor equal to or lower than the average annual Direct Labor and $301,316 was the median annual Direct Labor. Out of all Item 19 Shops, 44 (53%) had equal or lower Direct Labor than the average annual Direct Labor and $246,443 was the median annual Direct Labor.

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 Direct Labor for all Item 19 Shops was $246,443. This figure is based on data from corporate-owned Jeni's Ice Creams Scoop Shops operating for the entirety of the 2024 calendar year. The FDD specifies that 53% of these shops had equal or lower direct labor costs than the average.

Direct Labor is defined as the cost of wages and other compensation paid to shop employees, including payroll taxes and employee benefits, but excluding payroll administration costs. It also includes the cost of one shopkeeper per location. However, it does not include compensation for any corporate employees of Cream or its parent company, such as accounting and marketing personnel.

For a prospective Cream franchisee, this means that, based on the performance of corporate-owned stores, they might expect to spend around $246,443 annually on direct labor. However, this number can vary significantly depending on factors such as location, staffing levels, and employee wages. It is important to note that these figures are based on corporate-owned shops, and the FDD explicitly states that there were no franchised outlets operating as of the end of the most recent fiscal year, so no data from franchised outlets is available. Therefore, a franchisee's actual labor costs could differ.

It is important for potential franchisees to carefully consider these figures and conduct their own due diligence to estimate their potential labor costs accurately. They should also inquire about the factors that can influence labor costs and how Cream can support them in managing these expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.