What are the conditions for paying the Cream renewal fee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Renewal Fee | $20,000 | As incurred, prior to renewal | You must pay this fee as one of the conditions of obtaining a successor franchise upon the expiration of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must pay a renewal fee of $20,000 as one of the conditions for obtaining a successor franchise upon the expiration of the Franchise Agreement. This fee is due 'as incurred, prior to renewal,' meaning it must be paid before the renewal is granted.
This condition means that if a Cream franchisee wishes to continue operating their franchise after the initial term, they must budget for and pay the $20,000 renewal fee. Failing to pay this fee will prevent the franchisee from obtaining a successor franchise agreement, effectively ending their ability to operate under the Cream brand.
It is common practice in the franchise industry to charge a renewal fee, as it allows the franchisor to recoup costs associated with reviewing the franchisee's performance, updating the franchise agreement, and providing continued support. The Cream FDD specifies that all fees are non-refundable and uniformly imposed. All amounts paid to Cream and its affiliates must be in United States Dollars ($). Cream requires all payments to be made through electronic debit of your business account on or before their due dates or the next business day if the due date is a national holiday or a weekend day.