Can the Cream Brand Fund be used to pay for salaries of personnel who manage the Brand Fund?

According to Cream's 2025 Franchise Disclosure Document, the Brand Fund can be used to cover administrative and overhead costs. Specifically, these costs may include the salaries and benefits of personnel who manage and administer the Brand Fund. Additionally, the Brand Fund can cover any other expenses that Cream or its affiliates incur related to administering or directing the Brand Fund and its programs. Cream retains the right to modify Brand Fund expenditures at any time.

This means that a portion of the mandatory Brand Fund contributions from Cream franchisees, which is currently 2% of Net Sales but can be increased up to 4%, may be used to compensate Cream's employees or affiliates who oversee the Brand Fund. While this is a common practice in franchising, it's important for prospective franchisees to understand that they are contributing to these administrative costs.

Cream does not have any fiduciary obligation to franchisees regarding the Brand Fund, and Cream will not provide financial statements of the Brand Fund for franchisee review. Cream can also reduce or suspend Brand Fund contributions or terminate the Brand Fund entirely. If the Brand Fund is terminated, Cream will spend the remaining balance in accordance with their System Standards. Cream may also elect to maintain multiple Brand Funds or consolidate them.