Where will Cream collect the Net Sales of my Shop during any interim operation period?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
During any time period that we elect to operate your Shop on any interim basis, we will collect the Net Sales of your Shop in an account we designate, which may be your business account and/or the business account of us or one of our affiliates or designees. We will account for and deduct from such Net Sales all operating expenses of your Shop, including: (i) any applicable Royalty, Brand Fund Contributions, and other amounts due to us or our affiliates, and (ii) any and all of our and our affiliates' and our designees' costs and expenses arising from such interim operations, which you hereby agree that you will reimburse in full as an operating expense of your Shop. Any and all Net Sales that exceed the expenses of your Shop during the period of interim operations, as we determine and calculate, will be retained by us in full and will become our property, as consideration for the interim operations that we are providing under this Section 14.D. If the Net Sales derived from operation of your Shop are less than the amount of the associated expenses during the time of any interim operations, you are solely directly responsible for the balance of all such expenses and costs, including reimbursement of our and our affiliates' and designee's costs and expenses, and payment of any Royalty, Brand Fund Contributions, and other amounts due to us or our affiliates. We may collect any amounts owed to us, our affiliates, or designees directly from any collected Net Sales, and/or pay over such amounts to us, our affiliates, or designees in any manner we see fit.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, during any interim period that Cream elects to operate your shop, the net sales will be collected in an account that Cream designates. This account may be your business account, Cream's business account, or the business account of one of its affiliates or designees.
Cream will then account for and deduct all operating expenses of your shop from these net sales. These expenses include any applicable royalty, brand fund contributions, and other amounts due to Cream or its affiliates. Additionally, Cream will deduct any costs and expenses arising from the interim operations, which you agree to reimburse as an operating expense of your shop.
Any net sales exceeding the shop's expenses during the interim operation period, as determined and calculated by Cream, will be retained by Cream as consideration for providing the interim operations. If the net sales are less than the associated expenses, you are solely responsible for the balance of all expenses and costs, including reimbursement of Cream's costs and expenses, and payment of any royalty, brand fund contributions, and other amounts due to Cream or its affiliates. Cream may collect any amounts owed directly from the collected net sales or pay such amounts to its affiliates or designees in any manner it sees fit.