What financial statements are included in the Cream Disclosure Document?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We have not been in business for 3 years or more, and therefore cannot include all of the financial statements required by the FTC franchise rule. Attached to this Disclosure Document as Exhibit D is our audited opening balance sheet as of May 29, 2025. Our fiscal year ends on the fourth Sunday in the fiscal month of December, except when the fourth week of the fiscal month of December ends before December 31st, in which case our fiscal year is extended by one week.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 60)
What This Means (2025 FDD)
According to the 2025 Cream Franchise Disclosure Document, because Cream has not been in business for at least three years, the document does not include all of the financial statements typically required by the FTC. Instead, the Cream FDD includes Cream's audited opening balance sheet as of May 29, 2025, as Exhibit D.
It is standard practice for new franchisors to provide an opening balance sheet in their initial FDD if they lack a sufficient operating history. This balance sheet offers a snapshot of the company's assets, liabilities, and equity at a specific point in time.
Prospective franchisees should carefully review this balance sheet and consider having it analyzed by a financial professional. While it provides some insight into Cream's initial financial position, it does not offer a comprehensive view of the company's financial performance over time. To gain a more complete understanding, potential franchisees should ask Cream for additional financial information and projections to assess the financial viability of the franchise system.