Who is exempt from paying the transfer fee for a Cream franchise after the death or disability of the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or disability of you (or if you are conducting business as an Entity, any of your owners), such person's executor, administrator, conservator, guardian, or other personal representative must transfer such person's interest in this Agreement, your Shop, or ownership interest in you, to a third party that we approve (which may be such person's heirs, beneficiaries, or devisees). That transfer must be completed within a reasonable time, not to exceed 180 days from the date of death or disability, and is subject to all of the terms and conditions in this Section 12, except that any transferee that is the spouse or immediate family member of the deceased will not have to pay the transfer fee described in Section 12.C(10) if the transfer meets all the other conditions in Section 12.C, and the transferee reimburses us for any costs we incur in connection with documenting and otherwise processing such transfer, including reasonable attorneys' fees.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a transfer fee is not required when transferring ownership of the franchise to the deceased owner's surviving spouse. This exemption is contingent upon the transfer meeting all other specified terms and conditions. However, the spouse must reimburse Cream for any direct costs incurred during the documentation and processing of the transfer, including reasonable legal fees.
In the event of the franchisee's death or disability, their executor, administrator, conservator, guardian, or other personal representative is responsible for transferring the interest in the Franchise Agreement, the Shop, or the ownership interest to a third party approved by Cream. This transfer must occur within 180 days of the death or disability.
If the transfer is to someone other than the spouse or immediate family member, the standard transfer fee, as detailed elsewhere in the FDD, would apply. This clause provides a specific exception to the transfer fee for the surviving spouse, easing the financial burden during a difficult time, while ensuring Cream is not financially disadvantaged by the costs associated with the transfer process.