What is the significance of the 2024 calendar year for the Cream financial data presented in Item 19?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
As of December 31, 2024, there were a total of 87 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States. Of the 87 corporate-owned Jeni's Ice Creams Scoop Shops, 2 opened during 2024 and were not operating for the entirety of 2024, and 2 operated on a limited seasonal basis and therefore were not operating for the entirety of 2024. The data presented in this Item 19 is based
on the remaining 83 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States for the entirety of the 2024 calendar year (the "Item 19 Shops"). We had no franchised outlets operating as of the end of our most recent fiscal year and are therefore not able to present results for franchised outlets. The information for the Item 19 Shops is divided into quartiles based on annual Net Profit (defined below) for the 2024 calendar year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the financial performance data presented in Item 19 is based on the 2024 calendar year. Specifically, the data reflects the performance of 83 corporate-owned Jeni's Ice Creams Scoop Shops that operated for the entirety of 2024. This means that the financial metrics, such as Net Sales, COGS (Cost of Goods Sold), Gross Profit, Direct Labor, Occupancy, and other costs, are all calculated based on the shops' performance during this specific year.
Cream excluded shops that did not operate for the full year from the Item 19 data. Two shops opened during 2024 and two operated on a limited seasonal basis, and were therefore excluded from the financial performance data. By focusing on shops that operated for the entire year, Cream aims to provide a more consistent and reliable representation of potential financial performance for prospective franchisees.
It is important for potential Cream franchisees to understand that the financial performance data is based solely on corporate-owned shops, as Cream had no franchised outlets operating as of the end of their most recent fiscal year. Therefore, the data may not directly reflect the performance of franchised locations, which could be influenced by factors such as franchisee management style, local market conditions, and other variables. Prospective franchisees should consider these factors and conduct their own due diligence to assess the potential financial performance of a Cream franchise in their specific market.