Am I required to cooperate with Cream during shop inspections and tests?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to cooperate with us fully during the course of these inspections and tests. You agree to reimburse us for the cost of any quality assurance inspection and mystery shoppers that we engage to inspect your Shop from time to time.
If we determine after any inspection of your Shop that one or more failures of System Standards exist, we may re-inspect your Shop one or more times thereafter to evaluate whether such failures have been cured and/or conduct any other follow-up review that we deem is necessary. You must reimburse all of our costs associated with any failed inspection and all re-inspections and follow-up visits, including supplier fees, travel expenses, room and board, and compensation of our representatives and designees. These remedies are in addition to our other remedies and rights under this Agreement and applicable law if you violate any System Standards.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, as a franchisee, you are required to cooperate fully with Cream during shop inspections and tests. Cream, its agents, or representatives, have the right to inspect your shop at any time without prior notice. These inspections may include photographing, videotaping, monitoring via electronic surveillance, removing product samples, speaking with personnel and customers, inspecting your computer system, and reviewing your shop's books and records. Cream may also hire third parties to conduct mystery shopper visits, customer surveys, audits, and quality assurance inspections.
As a Cream franchisee, you must also reimburse Cream for the costs of any quality assurance inspections and mystery shoppers they engage to inspect your shop. If an inspection reveals failures of System Standards, Cream may re-inspect your shop to evaluate whether the issues have been resolved. You are responsible for reimbursing Cream for all costs associated with failed inspections, re-inspections, and follow-up visits, including supplier fees, travel expenses, room and board, and compensation for Cream's representatives and designees.
These inspection and audit rights are in addition to Cream's other rights and remedies under the Franchise Agreement and applicable law if you violate any System Standards. This means that non-cooperation could lead to further penalties or legal action, emphasizing the importance of maintaining compliance and open communication with Cream.