What criteria might Cream use to condition its approval of a product or supplier?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may condition our approval of a product or supplier on requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, customer relations, frequency of delivery, concentration of purchases, standards of service, or other criteria. If you would like us to consider approving a vendor that is not already approved by us, you must submit your request in writing before purchasing any items or services from such vendor. We will make all determinations about whether to approve an alternative vendor based on our thencurrent criteria, which may change. Currently, we estimate that we will provide notice of our decision to approve or disapprove an alternative supplier within 30 days of receiving the request and all
necessary materials for evaluation. We may also refuse to consider and/or approve any alternative vendor for any reason whatsoever. If you ask us to evaluate any proposed alternative suppliers, you must reimburse all of our costs and expenses for such evaluation. We may revoke our approval of any vendor at any time by providing written notice to you. You may not contract with any alternative vendors without receiving our prior approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream may condition its approval of a product or supplier based on several factors. These include requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, customer relations, frequency of delivery, concentration of purchases, standards of service, or other criteria. This means that if a franchisee wants to use a product or supplier not already approved by Cream, the product or supplier will be evaluated against these standards.
Cream requires franchisees to submit a written request for vendor approval before purchasing any items or services from an unapproved vendor. Cream will then determine whether to approve the alternative vendor based on its current criteria, which are subject to change. Cream estimates that it will provide notice of its decision within 30 days of receiving the request and all necessary evaluation materials. However, Cream retains the right to refuse to consider or approve any alternative vendor for any reason.
Furthermore, the franchisee is responsible for reimbursing Cream for all costs and expenses associated with evaluating any proposed alternative suppliers. Cream also reserves the right to revoke its approval of any vendor at any time by providing written notice. Franchisees are prohibited from contracting with any alternative vendors without obtaining Cream's prior approval. This process highlights the importance of adhering to Cream's approved supplier network and the potential costs and restrictions associated with seeking alternative options.