factual

Can Cream approve a supplier for only certain products?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

We may designate, approve, or develop System Standards for manufacturers, distributors, and suppliers of products and services to your Shop (collectively, "suppliers"), which may be us and/or our affiliates. You must purchase the products and services we periodically designate only from the suppliers we prescribe or approve, as applicable, and only on the terms and according to the specifications we approve. We may also designate a single supplier for any product or service, or approve a supplier only for certain products, which may be us or our affiliates.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to approve a supplier for specific products only. Cream may designate, approve, or develop System Standards for suppliers of products and services. Franchisees must purchase designated products and services from Cream's prescribed or approved suppliers, adhering to Cream's approved terms and specifications.

Cream retains the right to designate a single supplier for any product or service. Alternatively, Cream can approve a supplier specifically for certain products, which may include Cream itself or its affiliates. This allows Cream to maintain control over the supply chain and ensure consistency in product quality and standards across all franchise locations.

For a prospective Cream franchisee, this means they may be limited to purchasing certain products from specific suppliers approved by Cream. While franchisees can request approval for alternative suppliers, Cream has the discretion to deny such requests. Franchisees should discuss supplier options and approval processes with Cream to fully understand the implications for their business.

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.