When are the costs for non-approved product or vendor testing due to Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| 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. |
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 that Cream evaluate non-approved vendors or products and Cream agrees to do so, the franchisee must reimburse Cream for all costs and expenses incurred. These costs are due to Cream 'as incurred.' This means that Cream will bill the franchisee for these expenses as they happen.
This 'Non-Approved Product or Vendor Testing' fee is listed in Item 6, which details various other fees that a Cream franchisee might encounter during the course of their franchise agreement. Other fees that are also due 'as incurred' include interest on late payments, insufficient fund fees, relocation fees, renewal fees, insurance fees, franchise meeting fees, and mystery shopper fees.
It is important for prospective Cream franchisees to understand that requesting evaluation of non-approved products or vendors can lead to unpredictable expenses. The franchisee will need to budget for these potential costs and be prepared to pay them as Cream incurs them. This policy allows Cream to maintain control over its brand standards and product quality, while also providing franchisees with the flexibility to suggest alternative vendors or products, subject to Cream's approval and the franchisee's willingness to cover the associated costs.