Does the Cream franchise agreement guarantee success?
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: |
|---|---|
| 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 Cream's 2025 Franchise Disclosure Document, purchasing a franchise does not guarantee success. The document explicitly states that establishing any business, including a Cream franchise, involves risk. The success or failure of the franchise depends on many variables, including the franchisee's skills and abilities, the time devoted to the business, and the performance of partners, officers, and employees. External factors such as competition, interest rates, economic conditions, inflation, operation costs, location, lease terms, and the general marketplace also play a significant role.
The FDD emphasizes that the franchisee must be aware of and willing to undertake these business risks. It clarifies that the success or failure of the business primarily depends on the franchisee's efforts, not those of Cream. This underscores the importance of the franchisee's active involvement and management in ensuring the franchise's viability.
Furthermore, the document includes an acknowledgment that no statements, promises, or assurances have been made by Cream or its representatives regarding the franchise's success that contradict the information provided in the FDD. The franchisee's decision to purchase the franchise should not be influenced by any oral representations, assurances, warranties, guarantees, or promises made by Cream, especially concerning the likelihood of success. This reinforces the need for prospective franchisees to rely on their own due diligence and the information contained in the FDD when making their investment decision.