How often is the Royalty fee paid to Cream, and what sales period does it cover?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to pay us a monthly royalty fee (the "Royalty") equal to five percent (5%) of your Shop's Net Sales (defined in Section 3.C below) collected during the immediately preceding week.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Royalty fee is paid monthly and is equal to 5% of the Shop's Net Sales collected during the immediately preceding week. This means that Cream franchisees calculate their Net Sales on a weekly basis, then remit 5% of that amount to Cream on a monthly basis.
Net Sales for Cream include all revenue derived from operating the Shop, whether from cash, check, credit/debit card, or other forms of payment. Net Sales are calculated after authorized discounts, such as employee discounts or loyalty rewards, are deducted. However, Net Sales exclude sales taxes collected from customers and tips/gratuities collected for employees.
Cream franchisees should be aware that the Royalty fee is a recurring expense that will impact their profitability. Accurately tracking Net Sales each week is essential for calculating the correct Royalty fee and avoiding discrepancies with Cream. Franchisees should also factor in the Technology Fee, which is currently 0.25% of Net Sales, when assessing their overall financial obligations to Cream.