When is the Cream development fee due upon signing the Area Development Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
INITIAL INVESTMENT
(Area Development Agreement)
| Type of Expenditure | Amount | Method of | When Due | To Whom | ||
|---|---|---|---|---|---|---|
| Low | High | Payment | ,, non 2 uo | Payment is Made | ||
| Development Fee 1 | $105,000 | $150,000 | Lump sum |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the development fee is due upon signing the Area Development Agreement. The development fee ranges from $105,000 to $150,000, payable as a lump sum to Cream. The specific amount depends on the number of Cream Scoop Shops the franchisee commits to develop.
Specifically, if a franchisee agrees to develop three Cream Scoop Shops, the development fee is $105,000, which breaks down to $35,000 per shop. For an agreement to develop four shops, the fee is $140,000, also at $35,000 per shop. If the agreement is for five shops, the development fee is $150,000, equating to $30,000 per shop.
This initial investment is a significant upfront cost for franchisees, and it's important to note that, according to the FDD, this fee is generally non-refundable. Prospective franchisees should carefully consider their development plans and financial capabilities before signing the Area Development Agreement and committing to this fee.