Does the Cream franchise agreement acknowledge that franchisees possess general skills and other opportunities?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
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| I received a copy of the FDD at least 14 calendar days before I executed a Franchise | INITIAL: |
| Agreement or paid Franchisor or its affiliates any fees. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in these | |
| agreements and only in these agreements. I have had the opportunity to personally and | |
| carefully review these documents and have, in fact, done so. I have been advised to have | |
| professionals (such as lawyers and accountants) review the documents for me and to have | |
| them help me understand these documents. I have also been advised to consult with other | |
| franchisees regarding the risks associated with the purchase of the franchise. | |
| Neither the Franchisor nor any of its affiliates, officers, employees or agents (including any | INITIAL: |
| franchise broker) has made a statement, promise or assurance to me concerning any matter | |
| related to the franchise (including those regarding advertising, marketing, training, support | |
| service or assistance provided by Franchisor) that is contrary to, or different from, the | |
| information contained in the FDD. | |
| My decision to purchase the franchise has not been influenced by any oral representations, | INITIAL: |
| assurances, warranties, guarantees or promises whatsoever made by the Franchisor or any of | |
| its officers, employees or agents (including any franchise broker), including as to the | |
| likelihood of success of the franchise. | |
| I have made my own independent determination that I have the capital necessary to fund the | INITIAL: |
| franchised business and my living expenses, particularly during the start-up phase. |
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream Franchise Disclosure Document, the agreement includes an acknowledgement that the success of the franchise is subject to the franchisee's skills and abilities.
The FDD states that the success or failure of the Cream franchise depends on many variables, including the franchisee's skills and abilities, as well as those of their partners, officers, and employees. The amount of time devoted to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the marketplace, and other economic and business factors also play a role.
This acknowledgement indicates that Cream recognizes the importance of the franchisee's capabilities and efforts in determining the success of the business. It also highlights that Cream does not guarantee success and that the franchisee is undertaking business risks that are subject to various external factors. The franchisee's efforts are considered the primary driver of success, not the franchisor's.
This type of acknowledgement is common in franchise agreements, as it sets realistic expectations for potential franchisees and emphasizes the importance of their active involvement and competence in managing the business. It also serves to protect the franchisor from liability in the event of a franchisee's failure, as it demonstrates that the franchisee was aware of the risks involved and that their own efforts would be the primary determinant of success.