factual

What costs must be reimbursed to Cream for a transfer to a surviving spouse?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

ansferring all associated Franchise Agreements executed pursuant to the terms hereof, and the operations of any associated Jeni's Ice Creams Scoop Shops);

  • (6) the transferee must (if the transfer is of this Agreement or your Development Rights) sign our then-current form of area development agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, while the transfer fee is waived for a transfer to a surviving spouse, the transferee is responsible for reimbursing Cream for specific costs associated with the transfer.

Specifically, the surviving spouse must reimburse Cream for any direct costs incurred while documenting and processing the transfer. These costs include reasonable legal fees that Cream incurs during the transfer process. This means that while the standard $25,000 transfer fee is waived, the surviving spouse isn't entirely free from expenses related to the transfer.

This condition ensures that Cream is not financially burdened by the administrative and legal work required to execute the transfer to the surviving spouse. It is a fairly typical practice in franchising to cover the franchisor's costs in such a transfer, even within family members, to maintain consistency and fairness across all franchise operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.