What details regarding payment terms must be included in the offer presented to Cream for a franchise transfer?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) you provide us executed versions of any documents executed by you (or your owners) and transferee (and its owners) to effect the transfer, and all other information we request about the proposed transfer, and such transfer meets all of our requirements, including terms, closing date, purchase price, amount of debt and payment terms, and we have determined that the purchase price and other terms of the transfer will not adversely affect the operation of your Shop;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to a new owner, the offer presented to Cream must include specific details regarding payment terms. Cream needs to evaluate whether the transfer will adversely affect the transferee's ability to operate the Cream shop.
Specifically, Cream requires executed versions of all documents between the current franchisee (and their owners) and the prospective franchisee (and their owners) that effect the transfer. In addition to the executed documents, Cream requires all information about the proposed transfer, including the closing date, purchase price, amount of debt, and payment terms.
By requiring this information, Cream aims to ensure that the financial structure of the transfer does not jeopardize the future success of the franchise under new ownership. This is a standard practice in franchising, as the financial stability of each franchise location impacts the overall brand and the performance of the entire franchise system.