How does Cream currently require payments to be made?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
filiates must be in United States Dollars ($).
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- You must pay us all amounts in the manner we prescribe. Currently, we require all payments to be made through electronic debit of your business account on or before their due dates or the next business day if the due date is a national holiday or a weekend day. You must sign and deliver to us any documents we require for electronic debits of your account. You must ensure that funds are available in your designated account to cover our withdrawals. We may change the timing, frequency, and intervals of any payments from time to time, but with no less than 30 days' prior written notice to you. If you fail to report Net Sales, if we cease to have access to your Computer System, or if your Shop is closed without our authorization for any period of time, then for any fees under the Franchise Agreement which are calculated based on Net Sales, we may debit your account for 110% of the average Net Sales for the last three months of operations of your Shop. If the amounts that we debit from your account on the basis of any understatement are less than the amounts you actually owe us once we have determined the true and correct Net Sales, we will debit your account for the balance on the day we specify. If the amounts that we debit from your account on the basis of any understatement are greater than the amounts you actually owe us, we will credit the excess against the amounts we otherwise would debit from your account during the following period.
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- "Net Sales" means all revenue that you derive from operating your Shop whether from cash, check, vouchers, tickets, or other comparable forms of payment, credit and debit card, barter exchange, trade credit, or other credit transactions, net of authorized discounts (i.e., employee discounts, free birthday scoops, and good neighbor discounts and loyalty rewards). Net Sales excludes: (i) all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, and (ii) tips and gratuities collected for employees of the Shops. If we
authorize or require participation in online group-bought deals, gift certificate or gift card programs, or other similar programs, the payments you receive for those online group-bought deals, gift certificates, or gift cards will be included in Net Sales upon redemption.
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, all payments to Cream and its affiliates must be made in United States Dollars. Cream currently requires all payments to be made through electronic debit of the franchisee's business account. These payments are due on or before their due dates, or the next business day if the due date falls on a national holiday or weekend.
As a prospective Cream franchisee, you would need to sign and deliver any documents required by Cream for these electronic debits. It is crucial to ensure that sufficient funds are available in the designated account to cover all withdrawals made by Cream. Cream retains the right to modify the timing, frequency, and intervals of payments, providing at least 30 days' prior written notice.
Furthermore, if a Cream franchisee fails to report Net Sales, if Cream loses access to the franchisee's Computer System, or if the Shop is closed without authorization, Cream may debit the franchisee's account for 110% of the average Net Sales for the last three months of operation. If there are discrepancies between the debited amounts and the actual amounts owed, Cream will either debit the account for the balance or credit the excess against future debits. This highlights the importance of accurate reporting and maintaining authorized operations to avoid potential overcharges or penalties.
Cream also charges interest on late payments. All amounts owed to Cream for any reason will bear interest accruing from their due dates until payment is received in full. The interest rate is the lesser of 1.5% per month or the highest commercial contract rate allowed by law. Additionally, Cream charges an insufficient funds fee for returned checks or insufficient funds in the designated business account, which is the lesser of $100 or the highest amount permitted by applicable law per occurrence.