factual

What is the amount of the initial franchise fee for a Cream franchise?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

1-1">Initial Franchise Fee

You must pay us an initial franchise fee of $40,000 when you sign the Franchise Agreement. The initial franchise fee is paya

Source: Item 5 — INITIAL FEES (FDD page 12)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, the initial franchise fee is $40,000. This fee is due when the Franchise Agreement is signed and is payable in a lump sum. Cream specifies that this initial franchise fee is non-refundable. This means that regardless of whether the franchisee opens a Cream shop, the $40,000 will not be returned.

In addition to the initial franchise fee, Cream also charges an initial inventory fee ranging from $16,000 to $21,000, and an initial gift card set-up fee of $149. These fees, like the initial franchise fee, are non-refundable. If a prospective franchisee signs an Area Development Agreement, they will instead pay a Development Fee, which ranges from $105,000 to $150,000 depending on the number of Cream shops they agree to develop.

It is typical in the franchise industry for the initial franchise fee to be non-refundable, as it covers Cream's initial costs in setting up the franchisee. Prospective franchisees should carefully consider their financial situation and the likelihood of opening a Cream shop before paying this fee. They should also inquire about what specific services and support Cream provides in exchange for the initial franchise fee to ensure they are receiving adequate value.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.