For Cream shops in the top 25% quartile, what was the median annual 'Other Costs'?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
affiliates' costs for corporate level employees or other expenses that are not specifically attributable to a location. In the top 25% quartile, 14 Item 19 Shops (67%) had annual Other Costs equal to or lower than the average annual Other Costs, and $36,635 was the median annual Other Costs. In the upper mid 25% quartile, 14 Item 19 Shops (67%) had annual Other Costs equal to or lower than the average annual Other Costs and $29,116 was the median annual Other Costs. In the lower mid 25% quartile, 14 Item 19 Shops (67%) had annual Other Costs equal to or lower than the average annual Other Costs and $23,792 was the median
annual Other Costs. In the bottom 25% quartile, 14 Item 19 Shops (70%) had annual Other Costs equal to or lower than the average annual Other Costs and $31,462 was the median annual Other Costs. Out of all Item 19 Shops, 48
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 'Other Costs' for shops in the top 25% quartile was $36,635. The FDD specifies that this data is based on 'Item 19 Shops,' which are a subset of Cream locations used for financial performance representations. It is important to note that 67% of these top-performing shops had 'Other Costs' at or below the average for that group.
'Other Costs' are defined as all costs other than those specifically accounted for in other categories, including meals and travel expenses, shop experience, supplier services and fees, software and technology costs, marketing costs, and charitable donations. However, these 'Other Costs' do not include interest or financing costs, deductions for depreciation or amortization, income taxes, or an imputed Technology Fee.
For a prospective Cream franchisee, understanding 'Other Costs' is crucial for budgeting and financial planning. While $36,635 represents the median for the top quartile, individual stores may vary significantly based on factors like location, management practices, and local market conditions. Franchisees should carefully consider these potential expenses and how they might impact their profitability. It would be prudent to inquire with Cream about the specific components of 'Other Costs' and how they can be managed effectively.