What was the median annual Direct Labor for Cream franchises in the top 25% quartile?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ot include compensation for any corporate employees of ours or our Parent (such as accounting and marketing personnel). In the top 25% quartile, 12 Item 19 Shops (57%) had annual Direct Labor equal to or lower than the average annual Direct Labor, and $272,760 was the median annual Direct Labor. In the upper mid 25% quartile, 11 Item 19 Shops (52%) had annual Direct Labor equal to or lower than the average annual Direct Labor and $231,486 was the median annual Direct Labor. In the lower mid 25% quartile, 12 Item 19 Shops (57%) had annual Direct Labor equal to or lower than the average annual Direct Labor and $162,713 was the median annual COGS. In the bottom 25% quartile, 9 Item 19 Shops (45%) had annual 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
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 the top 25% quartile of shops was $272,760. The FDD clarifies that Direct Labor includes the cost of wages, compensation paid to shop employees, payroll taxes, and employee benefits, but excludes payroll admin costs. It also specifies that the cost of one Shopkeeper per Jeni's Ice Creams Scoop Shop is included in Direct Labor, but compensation for corporate employees is not.
This figure represents the midpoint of Direct Labor costs for the highest-performing 25% of Cream shops, meaning half of the shops in this quartile had Direct Labor costs above this amount, and half had costs below. It's important to note that 57% of the shops in the top 25% quartile had annual Direct Labor equal to or lower than the average annual Direct Labor. This suggests that while $272,760 is the median, there is still variability within this top quartile.
For a prospective Cream franchisee, understanding Direct Labor costs is crucial for projecting profitability. Factors influencing Direct Labor include local wage rates, staffing levels, employee benefits packages, and the Shopkeeper's salary. While the $272,760 figure provides a benchmark, franchisees should conduct their own research to estimate Direct Labor expenses accurately for their specific location and business plan. It is also important to note that the data presented in Item 19 is based on corporate-owned Jeni's Ice Creams Scoop Shops, as Cream had no franchised outlets operating as of the end of the most recent fiscal year.