What financial obligations must be met to transfer a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
and any documents ancillary thereto, and each such person must have completed and satisfied all of our application and certification requirements, including the criteria that neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest in or perform services for a Competitive Business;
- (2) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, several financial obligations must be met to transfer a franchise. The transferring franchisee must pay Cream a $25,000 transfer fee. However, this fee is waived if the transfer occurs from a deceased owner to their surviving spouse, although the reimbursement of direct costs associated with documenting and processing the transfer, including reasonable legal fees, is still required.
In addition to the transfer fee, the franchisee must ensure that all outstanding payments, including royalties, brand fund contributions, and any other amounts owed to Cream, its affiliates, and third-party suppliers, are paid up to date. These payments must be current both during the 60-day period before requesting consent for the transfer and throughout the period between the request and the actual transfer date.
Furthermore, if the shop has any existing deficiencies that Cream has notified the franchisee about, these must be corrected before the transfer. Alternatively, the transferee can agree to upgrade, remodel, and refurbish the shop according to Cream's current specifications for Jeni's Ice Creams Scoop Shops within a specified timeframe after the transfer. In this case, the transferee must also agree to escrow an amount approved by Cream to cover the costs of the required upgrades, remodeling, or refurbishment. These financial obligations ensure that the franchise remains in good standing and that the transferee is prepared to maintain the brand's standards.