factual

Can the Cream Brand Fund pay for the salaries and benefits of personnel who manage the fund?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

We may also use the Brand Fund to pay for the Brand Fund's administrative and overhead costs, including the reasonable salaries and benefits of personnel who manage and administer the Brand Fund, and any other expenses that we or our affiliates incur that are related to administering or directing the Brand Fund and its programs. We may modify Brand Fund programs, services, or expenditures at any time in our sole discretion.

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

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, the Brand Fund can be used to cover administrative and overhead costs. These costs may include the salaries and benefits of the personnel who manage and administer the Brand Fund. Cream also states that the Brand Fund can be used for any other expenses that Cream or its affiliates incur related to administering or directing the Brand Fund and its programs.

As a Cream franchisee, this means that a portion of your Brand Fund contributions could be used to compensate the individuals responsible for managing the fund itself. This is a fairly standard practice in franchising, as managing the Brand Fund involves administrative work that requires compensation.

It is important to note that Cream has exclusive control over the Brand Fund and its expenditures. Cream may modify Brand Fund programs, services, or expenditures at any time in its sole discretion. While the FDD specifies that personnel costs are an allowable expense, it does not provide details on the specific amounts or percentages of the Brand Fund that may be allocated to these costs. A prospective franchisee should consider asking Cream for more information about how the Brand Fund is managed and what proportion of the fund is typically used for administrative expenses, including personnel salaries and benefits.

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.