What evidence is required to show that appropriate measures have been taken to effect the transfer of a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
any beneficial or ownership interest in you) (i) sign our then-current form of guaranty undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us, and (ii) provide us with an updated Attachment A;
- (10) you pay us a transfer fee equal to $25,000; and
- (11) you provide us the evidence we request to show that appropriate measures have been taken to effect the transfer as it relates to the operation of your Shop, including transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new business licenses, insurance policies and material agreements, each in accordance with our System Standards.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, to demonstrate that appropriate measures have been taken to effect the transfer of a franchise, you must provide Cream with the evidence they request. This evidence must relate to the operation of your shop and include transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new ones, in accordance with Cream's System Standards. This requirement ensures that the transfer process is compliant and that the new owner can operate the Cream franchise smoothly.
For transfers related to Development Rights, you must provide evidence that appropriate measures have been taken to fulfill these rights. This includes transferring all necessary business licenses and material agreements or obtaining new ones. This ensures the transferee can properly manage and continue the development obligations associated with the franchise agreement.
Additionally, when terminating a franchise, you must provide Cream with satisfactory evidence of your compliance with obligations related to ceasing operations. This includes actions like removing Cream's branding, transferring digital presences, and ensuring the proper handling of confidential information and personal data. Providing this evidence is crucial for completing the transfer process and ensuring compliance with Cream's standards.