Does Cream approve or disapprove a franchisee's grand opening advertising program?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Approve or disapprove your grand opening advertising program (Franchise Agreement Section 9.A).
Grand Opening Advertising. You must spend at least $20,000 for a grand opening advertising program for your Shop. You must spend this amount in addition to all other amounts you must spend on advertising under the Franchise Agreement. The amount you spend on grand opening advertising will not count towards your Brand Fund Contribution (defined below). You must submit a plan for your grand opening marketing program to us for our approval at least 75 days before your expected Opening Date, and to complete all grand opening advertising pursuant to the plan we have approved. You must also use any media, materials, programs, and strategies that we require in connection with the grand opening advertising program.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream must approve or disapprove a franchisee's grand opening advertising program. Cream requires franchisees to spend at least $20,000 on a grand opening advertising program for their shop, in addition to other advertising expenses outlined in the Franchise Agreement.
The grand opening advertising plan must be submitted to Cream for approval at least 75 days before the expected opening date. Franchisees must also use any media, materials, programs, and strategies that Cream requires for the grand opening advertising program.
Cream has established a brand promotion fund, and franchisees must contribute a percentage of net sales to this fund. Currently, the Brand Fund Contribution is 2% of Net Sales, and Cream may modify this amount with 30 days prior notice, up to 4% of Net Sales. The amount spent on grand opening advertising does not count towards the Brand Fund Contribution.
Cream also requires franchisees to adhere to System Standards for all local advertising, which may include using specific advertising mediums, approved forms of advertisement, and prescribed online directories. Franchisees must submit samples of advertising materials not prepared or previously approved to Cream at least 14 days before use. If written approval is not received within 14 days, the materials are deemed disapproved, and Cream may withdraw approval at any time.