What business risks is a Cream franchisee expected to be aware of and willing to undertake?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
|---|---|
| I received a copy of the FDD at least 14 calendar days before I executed a Franchise | INITIAL: |
| Agreement or paid Franchisor or its affiliates any fees. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in these | |
| agreements and only in these agreements. I have had the opportunity to personally and | |
| carefully review these documents and have, in fact, done so. I have been advised to have | |
| professionals (such as lawyers and accountants) review the documents for me and to have | |
| them help me understand these documents. I have also been advised to consult with other | |
| franchisees regarding the risks associated with the purchase of the franchise. | |
| Neither the Franchisor nor any of its affiliates, officers, employees or agents (including any | INITIAL: |
| franchise broker) has made a statement, promise or assurance to me concerning any matter | |
| related to the franchise (including those regarding advertising, marketing, training, support | |
| service or assistance provided by Franchisor) that is contrary to, or different from, the | |
| information contained in the FDD. | |
| My decision to purchase the franchise has not been influenced by any oral representations, | INITIAL: |
| assurances, warranties, guarantees or promises whatsoever made by the Franchisor or any of | |
| its officers, employees or agents (including any franchise broker), including as to the | |
| likelihood of success of the franchise. | |
| I have made my own independent determination that I have the capital necessary to fund the | INITIAL: |
| franchised business and my living expenses, particularly during the start-up phase. |
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a prospective franchisee must acknowledge that buying a franchise does not guarantee success and involves inherent business risks. These risks are tied to various factors that can influence the success or failure of the franchise.
Specifically, the success of a Cream franchise depends on the franchisee's skills, abilities, and the time they and their associates devote to the business. External factors such as competition, interest rates, economic conditions, inflation, operation costs, location, lease terms, and the general marketplace also play significant roles. The document emphasizes that the franchisee must be aware of and willing to undertake these business risks, understanding that their efforts, not solely those of Cream, will primarily determine the business's outcome.
This acknowledgement is part of a broader declaration where the franchisee confirms they received the FDD at least 14 days before signing any agreements or paying fees, had the opportunity to review the documents with professionals, and were not influenced by any representations outside the FDD. This underscores the importance of due diligence and independent assessment of the risks involved in operating a Cream franchise.