Are the amounts payable to Cream refundable under any circumstances?

According to Cream's 2025 Franchise Disclosure Document, the amounts payable to Cream or its affiliates, as listed in the table of estimated initial investment, are generally not refundable. However, this non-refundability applies specifically to payments made to Cream or its affiliates.

For prospective Cream franchisees, this means that any fees or costs outlined in the initial investment table that are to be paid directly to Cream are typically non-refundable. This could include the initial franchise fee, development fees, and potentially initial inventory costs if paid to Cream. It is crucial for franchisees to understand this policy, as it affects their financial risk in the event they decide not to proceed with the franchise after paying these initial fees.

The FDD clarifies that amounts payable to third parties are governed by the terms of the agreement between the franchisee and those third parties. This means that the refundability of payments for items such as real estate, security deposits, architect fees, leasehold improvements, furniture, fixtures, equipment, decor, computer systems, signage, professional fees, and initial inventory (if purchased from third-party suppliers) will depend on the specific agreements negotiated with those vendors. Franchisees should carefully review these third-party agreements to understand the conditions under which refunds may be possible.

Cream does not offer direct or indirect financing for any part of the initial investment. Therefore, franchisees must secure their own funding, keeping in mind the non-refundable nature of payments made directly to Cream. This policy is fairly standard in the franchise industry, as initial fees are typically used to cover the franchisor's costs of setting up the franchise relationship and providing initial training and support.