Is the Cream audited balance sheet included because the company has been in business for 3 years?

According to the 2025 FDD, Cream includes an audited opening balance sheet as Exhibit D because it has not been in business for three years or more. The document states that Cream cannot include all the financial statements typically required by the FTC franchise rule due to this limited operating history. Instead, Cream provides an audited opening balance sheet as of May 29, 2025. Cream's fiscal year concludes on the fourth Sunday of December, unless that week ends before December 31st, in which case the fiscal year extends by one week.

For a prospective franchisee, this means that Cream's financial history is relatively new. The audited balance sheet offers a snapshot of the company's financial position at a specific point in time (May 29, 2025) but does not provide a comprehensive view of its performance over several years. This is a common situation for newer franchisors, as they simply have not been operating long enough to compile a multi-year financial track record.

Given this limited financial history, it is crucial for potential Cream franchisees to conduct thorough due diligence. This includes carefully reviewing the provided balance sheet, seeking advice from financial professionals, and asking Cream detailed questions about their financial projections, business model, and strategies for growth. Understanding the assumptions and risks underlying Cream's financial statements is essential for making an informed investment decision.