What costs are associated with transferring a Cream franchise to a wholly-owned entity?

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M 6 OTHER FEES** | 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 | | have not approved and we agree to do so. | | Insurance | 120% of the premiums paid | As incurred | If you fail or refuse to obtain and maintain the insurance we specify, we may obtain such insurance for you and your Shop on your behalf. | | Franchise Meeting Fee | To be determined (subject to change) | As incurred | We may designate that attendance at a franchise meeting is mandatory for you and/or your Shopkeeper. We will charge this fee even if you or your Shopkeeper do not attend. This fee will not exceed $1,500 per person. | | Mystery Shoppers | Reimbursement of our costs and expenses | As incurred | We may engage an independent shopping service to evaluate your Shop. We will determine the frequency, nature, and extent of the evaluation services. You must reimburse all fees and costs charged by the independent shopping service. | | Type of Fee | Amount | Due Date | 1, 2 Remarks | | 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 Product or Vendor Testing | Reimbursement of our costs and expenses | As incurred | You must reimburse our costs and expenses if you ask us to evaluate any vendors or products that we have not approved and we agree to do so. | | Insurance | 120% of the premiums paid | As incurred | If you fail or refuse to obtain and maintain the insurance we specify, we may obtain such insurance for you and your Shop on your behalf. | | Franchise Meeting Fee | To be determined (subject to change) | As incurred | We may designate that attendance at a franchise meeting is mandatory for you and/or your Shopkeeper. We will charge this fee even if you or your Shopkeeper do not attend. This fee will not exceed \$1,500 per person. | | Mystery Shoppers | Reimbursement of our costs and expenses | As incurred | We may engage an independent shopping service to evaluate your Shop. We will determine the frequency, nature, and extent of the evaluation services. You must reimburse all fees and costs charged by the independent shopping service. | | Type of Fee | Amount | Due Date | 1, 2 Remarks | | |------------------------------|------------------------------------------------------------------------------------------------------------------|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | Audit Fee | Reimbursement of our costs and expenses | As incurred | If any audit of your Net Sales is necessary due to your failure to furnish reports on a timely basis, or if our examination reveals an understatement exceeding 2% of the amount that you actually reported to us, you must reimburse us for the costs of the audit, including fees of attorneys and accountants and the travel expenses, room and board, and compensation of our employees. | | | Interim Operations Fee | Net Sales exceeding the expenses of your Shop, plus reimbursement of our costs and expenses | As incurred | Due if we operate your Shop on an interim basis: (i) if you abandon or fail actively to operate your Shop for a period of more than three consecutive days; (ii) at any time after the death or disability of you (or your Principal Owner, as defined in Item 15), if your Shop is at any time not being managed properly; or (iii) the Franchise Agreement expires or is terminated and we are transitioning your Shop to us or another person we designate. | | | Indemnification | Reimbursement of our damages, costs and expenses | As incurred | You must reimburse us, our affiliates, and each of our and their respective affiliates, owners, directors, managers, officers, employees, agents, successors, and assignees, if any of us is held liable for claims related to the operation of your Shop, actions, errors, or omissions of you or your representatives, your breach of the Franchise Agreement or Area Development Agreement, or your employment practices. The costs we incur may include fees for accountants, arbitrators, attorneys, and expert witnesses; investigation costs; court costs; and travel and living expenses. | | | Costs and Attorneys' Fees | Reimbursement of our costs and expenses | As incurred | If we are the prevailing party in any dispute proceeding between you and us, you must pay our damages, costs, and expenses, including arbitration and court costs and reasonable attorneys' fees. | | | Tax Reimbursement | Reimbursement of our costs and expenses | As incurred | You are responsible for paying all taxes for your Shop, and you must reimburse us for any taxes that we must pay to any state taxing authority on account of your operation or payments that you make to us. Source: Item 6 — OTHER FEES (FDD pages 13–17)

What costs are associated with transferring a Cream franchise to a wholly-owned entity?

Answer from 2025 FDD Document

What This Means (2025 FDD)

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		have not approved and we agree to do so.
Insurance	120% of the premiums paid	As incurred	If you fail or refuse to obtain and maintain the insurance we specify, we may obtain such insurance for you and your Shop on your behalf.
Franchise Meeting Fee	To be determined (subject to change)	As incurred	We may designate that attendance at a franchise meeting is mandatory for you and/or your Shopkeeper. We will charge this fee even if you or your Shopkeeper do not attend. This fee will not exceed $1,500 per person.
Mystery Shoppers	Reimbursement of our costs and expenses	As incurred	We may engage an independent shopping service to evaluate your Shop. We will determine the frequency, nature, and extent of the evaluation services. You must reimburse all fees and costs charged by the independent shopping service.
Type of Fee	Amount	Due Date	1, 2 Remarks
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 Product or Vendor Testing	Reimbursement of our costs and expenses	As incurred	You must reimburse our costs and expenses if you ask us to evaluate any vendors or products that we have not approved and we agree to do so.
Insurance	120% of the premiums paid	As incurred	If you fail or refuse to obtain and maintain the insurance we specify, we may obtain such insurance for you and your Shop on your behalf.
Franchise Meeting Fee	To be determined (subject to change)	As incurred	We may designate that attendance at a franchise meeting is mandatory for you and/or your Shopkeeper. We will charge this fee even if you or your Shopkeeper do not attend. This fee will not exceed $1,500 per person.
Mystery Shoppers	Reimbursement of our costs and expenses	As incurred	We may engage an independent shopping service to evaluate your Shop. We will determine the frequency, nature, and extent of the evaluation services. You must reimburse all fees and costs charged by the independent shopping service.
Type of Fee	Amount	Due Date	1, 2 Remarks
------------------------------	------------------------------------------------------------------------------------------------------------------	-------------	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	--
Audit Fee	Reimbursement of our costs and expenses	As incurred	If any audit of your Net Sales is necessary due to your failure to furnish reports on a timely basis, or if our examination reveals an understatement exceeding 2% of the amount that you actually reported to us, you must reimburse us for the costs of the audit, including fees of attorneys and accountants and the travel expenses, room and board, and compensation of our employees.
Interim Operations Fee	Net Sales exceeding the expenses of your Shop, plus reimbursement of our costs and expenses	As incurred	Due if we operate your Shop on an interim basis: (i) if you abandon or fail actively to operate your Shop for a period of more than three consecutive days; (ii) at any time after the death or disability of you (or your Principal Owner, as defined in Item 15), if your Shop is at any time not being managed properly; or (iii) the Franchise Agreement expires or is terminated and we are transitioning your Shop to us or another person we designate.
Indemnification	Reimbursement of our damages, costs and expenses	As incurred	You must reimburse us, our affiliates, and each of our and their respective affiliates, owners, directors, managers, officers, employees, agents, successors, and assignees, if any of us is held liable for claims related to the operation of your Shop, actions, errors, or omissions of you or your representatives, your breach of the Franchise Agreement or Area Development Agreement, or your employment practices. The costs we incur may include fees for accountants, arbitrators, attorneys, and expert witnesses; investigation costs; court costs; and travel and living expenses.
Costs and Attorneys' Fees	Reimbursement of our costs and expenses	As incurred	If we are the prevailing party in any dispute proceeding between you and us, you must pay our damages, costs, and expenses, including arbitration and court costs and reasonable attorneys' fees.
Tax Reimbursement	Reimbursement of our costs and expenses	As incurred	You are responsible for paying all taxes for your Shop, and you must reimburse us for any taxes that we must pay to any state taxing authority on account of your operation or payments that you make to us.