What costs must a transferee reimburse Cream for in connection with a transfer after death or disability?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or disability of you (or if you are conducting business as an Entity, any of your owners), such person's executor, administrator, conservator, guardian, or other personal representative must transfer such person's interest in this Agreement, your Shop, or ownership interest in you, to a third party that we approve (which may be such person's heirs, beneficiaries, or devisees). That transfer must be completed within a reasonable time, not to exceed 180 days from the date of death or disability, and is subject to all of the terms and conditions in this Section 12, except that any transferee that is the spouse or immediate family member of the deceased will not have to pay the transfer fee described in Section 12.C(10) if the transfer meets all the other conditions in Section 12.C, and the transferee reimburses us for any costs we incur in connection with documenting and otherwise processing such transfer, including reasonable attorneys' fees.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, in the event of a transfer of the franchise due to death or disability, the transferee must reimburse Cream for specific costs. The transferee is required to cover any expenses Cream incurs while documenting and processing the transfer. These costs specifically include reasonable attorney's fees.
However, there is an exception to the transfer fee for certain transferees. If the transferee is the spouse or an immediate family member of the deceased, they are not required to pay the standard transfer fee of $25,000, provided that all other conditions for the transfer are met. Despite this waiver of the transfer fee, the spouse or immediate family member is still responsible for reimbursing Cream's costs associated with documenting and processing the transfer, including attorney's fees.
This policy ensures that Cream is not financially burdened by the administrative and legal work required to facilitate the transfer of ownership in the event of death or disability. It also provides a measure of relief to the deceased's family by waiving the transfer fee for close relatives, while still requiring them to cover the direct costs incurred by Cream during the transfer process.