What is the due date for the insurance premiums paid by Cream on behalf of the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
M 6 OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Interest on Late Payment | Lesser of 1.5% per month or the highest commercial contract rate allowed by law | As incurred | All amounts which you owe us for any reason wi |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee fails to obtain and maintain the insurance Cream specifies, Cream has the option to obtain the insurance on behalf of the franchisee's shop. In this case, the franchisee is responsible for paying 120% of the premiums paid by Cream.
The due date for these insurance premiums is "as incurred." This means that the payment is due when Cream incurs the cost of the insurance.
Cream also specifies that all payments must be made via electronic debit from the franchisee's business account on or before the due dates. If the due date falls on a national holiday or weekend, the payment is due the next business day. Cream will provide at least 30 days' prior written notice before changing the timing, frequency, or intervals of any payments.