Does Cream or its affiliates currently derive revenue from suppliers based on franchisee purchases and leases of certain products and services?

According to Cream's 2025 Franchise Disclosure Document, Cream and its affiliates may potentially derive revenue from suppliers through rebates, vendor promotions, or other forms of consideration based on franchisee purchases and leases. However, as of the issuance date of the FDD, neither Cream nor its affiliates currently do so. Cream also states that they did not derive any revenue from vendors based on franchisee purchases in their last fiscal year.

This suggests that while Cream has the option to receive revenue from suppliers based on franchisee purchases, it is not currently exercising this option. As a prospective franchisee, it is important to understand that this could change in the future. Cream retains the right to negotiate purchase arrangements with suppliers and may begin to receive revenue from them based on your purchases.

It is important for a prospective Cream franchisee to monitor this aspect of the franchise relationship. Franchisees should inquire about the conditions under which Cream might start deriving revenue from suppliers and how this might affect the cost of goods and services they purchase. Understanding these potential revenue streams for the franchisor can help franchisees better assess the overall financial implications of the franchise agreement.