What are the costs associated with non-approved product or vendor testing by Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Interest on Late Payment | Lesser of 1.5% per month or the highest commercial contract rate allowed by law | As incurred | All amounts which you owe us for any reason will bear interest accruing as of their due dates until payment is received in full. |
| Insufficient Funds Fee | Lesser of $100 or the highest amount permitted by applicable law, per occurrence | As incurred | We will charge you the lesser of our then-current fee, or the highest amount permitted by applicable law, per occurrence, for checks returned to us due to insufficient funds or in the event there are insufficient funds in the business account you designate to cover our withdrawals. |
| Transfer Fee | $25,000 | As incurred, prior to approval of transfer | You must pay this fee as one of the conditions of transferring your Shop and/or your Franchise Agreement and/or Area Development Agreement to another person we approve (other than to a wholly- owned and controlled entity, or if the transfer is from a deceased owner to a surviving spouse, though in such cases you must still reimburse us our processing costs, including legal fees). |
| Relocation Fee | $7,500, plus reimbursement of our costs and fees | As incurred | If you request to relocate your Shop and we approve your request, you must pay a relocation fee. |
| 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. |
| Non-Approved | Reimbursement of | As incurred | You must reimburse our costs and expenses if you |
| Product or | our costs and | ask us to evaluate any vendors or products that we | |
| Vendor Testing | expenses | ha |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee requests Cream to evaluate vendors or products that have not been approved, and Cream agrees to do so, the franchisee must reimburse Cream for all costs and expenses incurred. This reimbursement is due as the costs are incurred.
This means that if a Cream franchisee wants to use a product or vendor that is not already approved by Cream, they can request Cream to evaluate the vendor or product. However, the franchisee will be responsible for covering all of Cream's costs and expenses associated with this evaluation. These costs can include anything from the time Cream's staff spends on the evaluation to any testing fees or other expenses incurred during the approval process.
This policy is fairly standard in franchising, as franchisors want to maintain quality control and consistency across all franchise locations. By requiring franchisees to use approved vendors and products, Cream can ensure that all locations are meeting the brand's standards. However, it also allows franchisees the flexibility to suggest new vendors or products, as long as they are willing to cover the costs of evaluation. Franchisees should consider this potential expense when budgeting for their Cream franchise and carefully weigh the benefits of suggesting a new vendor or product against the potential costs of having it evaluated.