What documents must a transferee sign if the transfer involves a beneficial or ownership interest in the Cream franchisee?

According to Cream's 2025 Franchise Disclosure Document, if the transfer involves any beneficial or ownership interest in the franchisee, the transferee(s) must sign Cream's then-current form of guaranty. This guaranty obligates them to be personally bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements between the franchisee and Cream. Additionally, the transferee must provide an updated Attachment A.

This requirement ensures that Cream maintains a consistent level of commitment and accountability from all parties involved in the franchise. By requiring a personal guaranty, Cream seeks to prevent individuals from shielding themselves behind corporate structures and to ensure that they are personally invested in the success of the franchise.

For a prospective Cream franchisee, this means that if they plan to transfer any ownership interest in their franchise, the new owner(s) will need to sign a guaranty, effectively taking on the same responsibilities and obligations as the original franchisee. This is a standard practice in franchising, designed to protect the franchisor's brand and system standards.