Besides the approved premises, can a Cream franchisee conduct business from any other location without authorization?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ystem Standards for offering or selling any products or services, we may permanently or temporarily terminate your right to offer or sell such products or services; provided, that nothing contained herein will be deemed a waiver of our right to terminate pursuant to Section 14.C.
We may periodically authorize you to offer off-site products or services from your Shop, including delivery and/or catering. If we authorize you to offer any off-site products or services from your Shop, you must comply with all of our System Standards that we establish for such products and services, which may include geographic limitations for where you may offer such products and services. We may modify our System Standards, including geographic limitations, for off-site products and services at any time with notice to you. Other than in connection with services or products we have expressly authorized for your Shop, you may not offer, sell, or distribute any products or services at wholesale, or in any other business-to-business or large batch capacity, and/or in any other manner we have not expressly authorized.
D.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees need authorization to conduct business outside of their approved premises. Cream may authorize franchisees to offer off-site products or services, including delivery and/or catering, from their shop. If Cream authorizes off-site services, franchisees must adhere to the System Standards established for these services, which may include geographic limitations. These standards, including geographic limitations, can be modified by Cream with notice to the franchisee.
Without express authorization for specific products or services, franchisees are prohibited from offering, selling, or distributing any products or services at wholesale, in a business-to-business capacity, in large batches, or in any manner not expressly authorized by Cream. This restriction ensures that franchisees do not deviate from the approved business model without prior consent.
Furthermore, franchisees may not relocate their shop to a location other than the approved premises without prior approval from Cream. If relocation is approved, the franchisee must pay a relocation fee of $7,500, in addition to reimbursing Cream for any out-of-pocket expenses incurred during the relocation process, including legal fees. This policy ensures that Cream maintains control over the location of its franchises and can manage any potential impact of relocation on the brand and other franchisees.
These stipulations are typical in franchising, as franchisors like Cream need to maintain brand consistency and control over their network. Franchisees should be aware of these restrictions and the potential costs associated with relocation or unauthorized business activities outside of the approved premises.