What was the median annual Occupancy cost for all Cream franchises?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
) had equal or lower Direct Labor than the average annual Direct Labor and $246,443 was the median annual Direct Labor.
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- Occupancy means the cost of rent, utilities, property insurance, and common area maintenance for the real property. In the top 25% quartile, 13 Item 19 Shops (62%) had annual Occupancy equal to or lower than the average annual Occupancy, and $130,062 was the median annual Occupancy. In the upper mid 25% quartile, 10 Item 19 Shops (48%) had annual Occupancy equal to or lower than the average annual Occupancy and $113,337 was the median annual Occupancy. In the lower mid 25% quartile, 13 Item 19 Shops (62%) had annual Occupancy equal to or lower than the average annual Occupancy and $94,301 was the median annual Occupancy. In the bottom 25% quartile, 11 Item 19 Shops (55%) had annual Occupancy equal to or lower than the average annual Occupancy and $133,354 was the median annual Occupancy. Out of all Item 19 Shop
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 occupancy cost for all Item 19 Shops was $122,727. Occupancy costs, as defined in the FDD, include rent, utilities, property insurance, and common area maintenance for the real property. This figure represents the midpoint of occupancy costs across all Cream locations included in Item 19, meaning half of the locations had occupancy costs above this amount, and half had costs below.
Breaking down the data into quartiles, the FDD indicates that the top 25% of Cream locations had a median annual occupancy cost of $130,062, while the upper mid 25% had a median of $113,337. The lower mid 25% reported a median occupancy cost of $94,301, and the bottom 25% had a median of $133,354. It is important to note that 54% of the Item 19 Shops had annual occupancy costs equal to or lower than the average annual occupancy.
For a prospective Cream franchisee, understanding occupancy costs is crucial for financial planning. These costs can vary significantly based on location, lease terms, and utility usage. The FDD's breakdown by quartile provides a range of potential occupancy expenses, allowing franchisees to estimate costs based on their anticipated sales volume and location characteristics. Franchisees should carefully consider these figures and conduct thorough market research to project realistic occupancy expenses for their specific Cream location.