What documents must be provided to Cream that are executed by the franchisee (or its owners) and transferee (and its owners) to effect the 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;
(4) you (and your owners) and the transferee (and its owners) sign all of the documents we are then requiring in connection with a transfer, in a form satisfactory to us, including: (i) a release of any and all claims (except for claims which cannot be released or waived pursuant to applicable law) against us and our affiliates and our and their owners, officers, directors, employees, and agents, and (ii) covenants that you and your transferring owners agree to satisfy all post-termination obligations under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, to transfer a franchise, a franchisee must provide executed versions of any documents executed by the franchisee (or their owners) and the transferee (and their owners) to Cream. These documents effect the transfer. The franchisee must also provide all other information Cream requests about the proposed transfer. The transfer must meet all of Cream's requirements, including terms, closing date, purchase price, amount of debt, and payment terms. Cream must determine that the purchase price and other terms of the transfer will not adversely affect the operation of the shop.
Additionally, both the franchisee (and their owners) and the transferee (and their owners) must sign all documents Cream requires in connection with a transfer, in a form satisfactory to Cream. These documents include (i) a release of any and all claims (except for claims which cannot be released or waived pursuant to applicable law) against Cream and its affiliates and their owners, officers, directors, employees, and agents, and (ii) covenants that the franchisee and their transferring owners agree to satisfy all post-termination obligations under the Franchise Agreement.
If the transfer involves any beneficial or ownership interest in the franchisee, the transferee(s) must sign Cream's then-current form of guaranty undertaking personally to be bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements between the franchisee and Cream. The transferee must also provide Cream with an updated Attachment A. If the transfer is of the Franchise Agreement or the shop, the transferee must sign Cream's then-current form of franchise agreement and related documents. These provisions may differ materially from those contained in the original agreement, including the Royalty and the Brand Fund Contribution.