Can Cream designate a single supplier for a specific product or service?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may designate, approve, or develop System Standards for manufacturers, distributors, and suppliers of products and services to your Shop (collectively, "suppliers"), which may be us and/or our affiliates. You must purchase the products and services we periodically designate only from the suppliers we prescribe or approve, as applicable, and only on the terms and according to the specifications we approve. We may also designate a single supplier for any product or service, or approve a supplier only for certain products, which may be us or our affiliates.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream has the authority to designate a single supplier for any product or service needed for the operation of a franchise. Cream can also approve a supplier for specific products only. This supplier may be Cream itself or one of its affiliates.
As a Cream franchisee, you are required to purchase designated products and services only from suppliers that Cream prescribes or approves. These purchases must be made on the terms and according to the specifications that Cream approves. This requirement ensures uniformity and quality control across all Cream franchise locations.
Cream may also concentrate purchases with one or more suppliers to obtain benefits such as lower prices or advertising support. Cream and its affiliates may receive consideration, revenue, or profits based on your purchases from these suppliers, including promotional allowances, rebates, and volume discounts. This arrangement is generally standard in franchising, where franchisors leverage the collective buying power of their franchisees.