Where can I find the current form of guarantee required by Cream for owners of a franchisee Entity?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree and represent that Attachment A to this Agreement completely and accurately describes all of your owners and their interests in you as of the Effective Date. Each of your owners with a 10% or greater ownership interest in your Entity must execute a guarantee in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us. Our current form of guarantee is attached herein as Attachment D. Subject to our rights and your obligations under Section 12, you and your owners agree to sign and deliver to us revised Attachment A to reflect any permitted changes in the information that Attachment A now contains.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the current form of guarantee required for owners of a franchisee entity is included as Attachment D to the franchise agreement. Specifically, if the franchisee is a corporation, limited liability company, or partnership (referred to as an "Entity"), each owner with a 10% or greater ownership interest in the Entity must execute this guarantee.
This guarantee legally binds the owner personally to all provisions of the Franchise Agreement and any related ancillary agreements between the franchisee entity and Cream. This means that the individual owner is held jointly and severally liable for the entity's obligations under the franchise agreement.
For a prospective Cream franchisee, this requirement means that if you own 10% or more of the franchisee entity, you must sign the guarantee, making you personally responsible for the franchise's performance and adherence to the franchise agreement. This is a standard practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee entity.