What bookkeeping, accounting, and reporting systems does Cream require franchisees to use?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
providing us and our designees with such access to the Computer System as we may request from time to time. If such supplier is not willing to grant independent access for any reason, you agree to provide us and our designees access to your Computer System through your account and/or administrator privileges we specify.
You agree to conduct all bookkeeping, accounting, and recordkeeping for your Shop using the software and other products and services we designate and/or approve from time to time, and conforming to the requirements, specifications, and formats we prescribe from time to time. Without limiting the foregoing, you agree that we may periodically require you to use a standard chart of accounts for your Shop's accounting and bookkeeping records, and if we do so, you agree to use all standard chart of accounts, ledgers, and similar organizational and standardized methods of recording your Shop's financial performance and profits, losses, assets, revenue, and expenses. We may modify our requirements for your Shop's bookkeeping, accounting, and recordkeeping from time to time and you agree to comply with all of our System Standards for bookkeeping, accounting, and recordkeeping.
You agree to deliver to us such financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, and such other records we request, at the intervals and in the formats we specify. We may modify our requirements for the types, formats, specifications, and methods for your reports and financial statements from time to time. You agree to verify and sign each report and financial statement in the manner we prescribe. We may use and/or disclose these reports and/or any data derived from these reports, as we determine in our sole discretion. You agree to preserve and maintain all records in a secure location at your Shop for at least three years, or such longer period as may be required by applicable law (including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers).
At our request, you will provide current financial information for your owners and guarantors sufficient to demonstrate such owners and guarantors' ability to satisfy their financial obligations under their individual guarantees (our form of which is attached hereto as Attachment D).
11. INSPECTIONS AND AUDITS.
A. OUR RIGHT TO INSPECT YOUR SHOP.
We and our designated agents or representatives, may at all times and without prior notice to you: (1) inspect your Shop; (2) photograph your Shop and observe and videotape your Shop's operation for consecutive or intermittent periods we deem necessary; (3) continuously or periodically monitor your Shop using electronic surveillance or other means; (4) remove samples of any products and supplies; (5) speak with your Shop's personnel and customers; (6) inspect your Computer System, including hardware, software, security, configurations, connectivity, and data access; and (7) inspect and copy any books, records, and documents relating to your Shop's operation.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must conduct all bookkeeping, accounting, and recordkeeping for their shop using software, products, and services that Cream designates or approves. These systems must conform to Cream's requirements, specifications, and formats, which may be modified periodically. Cream may also require franchisees to use a standard chart of accounts for their shop's accounting and bookkeeping records, including ledgers and standardized methods for recording financial performance, profits, losses, assets, revenue, and expenses. Compliance with Cream's system standards for bookkeeping, accounting, and recordkeeping is mandatory.
Cream requires franchisees to deliver financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, and other records at specified intervals and formats. These requirements for types, formats, specifications, and methods for reports and financial statements may change over time. Franchisees must verify and sign each report and financial statement as prescribed by Cream. Cream has the right to use and disclose these reports and any data derived from them at its discretion. Franchisees are obligated to preserve and maintain all records in a secure location at their shop for at least three years, or longer if required by law, including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers.
Cream also has the right to examine the bookkeeping and accounting records for the shop, sales and income tax records and returns, and other records at any time during business hours without prior notice. Franchisees must cooperate fully with Cream's representatives during any examination. If an examination reveals an understatement of net sales, the franchisee must pay the amounts due on the understated net sales, plus service charges and interest. Additionally, if the examination is necessary due to the franchisee's failure to furnish required reports or if the examination reveals an understatement exceeding 2% of the amount reported, the franchisee must reimburse Cream for the costs of the examination, including audit costs, attorney fees, accountant charges, and travel expenses.