Who bears the cost of developing and outfitting the Cream Shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Once you receive our approval of your Lease, you must promptly apply for permits and other local licenses necessary to complete the construction outlined in your Construction Plans. You are responsible for conforming your Premises to local ordinance and building codes, obtaining required permits, and constructing, remodeling, decorating, and otherwise outfitting the Premises to satisfy our specifications. After signing your Lease, you must promptly begin to develop and outfit your Shop in accordance with the Construction Plans we have approved, at your cost, including that you must promptly obtain all required zoning changes, planning consents, building, utility, sign and business permits and licenses necessary to lawfully open and operate your Shop. You may not modify the Construction Plans in any manner without our approval of such modifications. You must ensure that your Shop is designed and constructed in all respects in accordance with the Construction Plans we have approved. You must also, at your cost, to do all things necessary to develop and prepare your Shop for opening in accordance with your Franchise Agreement and our System Standards.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to the 2025 FDD, the franchisee is responsible for all costs associated with developing and outfitting their Cream shop. This includes conforming the premises to local ordinances and building codes, obtaining the necessary permits, and handling all construction, remodeling, and decorating to meet Cream's specifications.
Specifically, the franchisee must secure zoning changes, planning consents, building, utility, sign, and business permits and licenses required to legally open and operate the Cream shop. Franchisees must also ensure that the shop's design and construction align with Cream's approved Construction Plans. Any modifications to these plans require Cream's approval.
In summary, the financial burden of preparing the Cream shop for opening, including all development and outfitting expenses, falls entirely on the franchisee. This is a standard practice in franchising, where franchisees typically bear the costs of establishing their location to the franchisor's standards.